Which state in US is best to buy a property to have rental income?

[Sawyer]

I read about Florida/Miami is good. 200k house provides 1500-2,000$ monthly rent income, is true or hoax? Any experiences?

[d2bets]

I read about Florida/Miami is good. 200k house provides 2,000$ monthly rent income, is true or hoax? Any experiences?

$2,000 is probably gross before all the expenses. How much is the property insurance? You gotta look at what you might make net and how much time you will spend. Then you can see what's worthwhile. If you spend 10 hours a month that's 120 hours a year. Now value yourself at least $50/hour and that's a $6,000 expense. Include that in your net and see what your % profit is. 5%? You can earn almost that in a risk-free CD.

If you own a lot of properties and can scale it, it can make sense. But if you're trying to buy one property for extra income, it's probably not worth it when you take everything into account.

[GLORIOUS]

I'm in Florida. Neighbor next door sold his shithole house for $260k (sold for $90k like 4 years ago). Idiot that bought it immediately put it on the market for $2100/mo, legitimately days after closing and before he even looked at it. Think he eventually ended up getting it rented for like $1400-1500 after about 5 or 6 months.

Don't be that dumbass.

[Waterstpub87]

Owning rental properties has a lot of "hidden juice". Taxes, repair costs, going to court to actually get people to pay/evict.

The smart move is to buy cheap shifty houses in a college town and rent to the students, since they do not care because of borrowing the money for student loans. Just have to deal with damage, but who cares, because they are shifty houses anyway.

[d2bets]

Owning rental properties has a lot of "hidden juice". Taxes, repair costs, going to court to actually get people to pay/evict.

The smart move is to buy cheap shifty houses in a college town and rent to the students, since they do not care because of borrowing the money for student loans. Just have to deal with damage, but who cares, because they are shifty houses anyway.

Exactly. People think it's easy money, but it isn't. In a perfect situation, it can work. But it's very easy to screw up.

[stevenash]

Florida
Texas
Tennessee (low property prices/high percentage of renters)

[jjgold]

Its good if you know what your doing not for everyone

[SlickFazzer]

Money can be made anywhere, but like JJ said you have to know what you are doing. The deal must
make sense and produce cash flow that is worth your time.

[mjsuax13]

I read about Florida/Miami is good. 200k house provides 1500-2,000$ monthly rent income, is true or hoax? Any experiences?

Very few $200k homes that actual humans want to live in today. Apartments are popping up everywhere with better amenities, location, etc… $200k budget tough to work with. Particularly if you want it in a market with decent rents, stronger job market, quality of life? etc… lots of maintenance costs overall and shit tenants will make it worse. If you want to be a slumlord you can find that but hire security for collecting rents. If you are serious work with a property management company with a real estate side also. It’s a pain in the ass if you don’t. They will have the entire process dialed. Don’t take a loan though with 7% interest. I owned a half dozen places at one point and it turned into maintenance and collection agency so I hired a property management company. I’m happily moved on from that.

[Thefix13]

You aren't getting much for 200k in Florida and certainly not in the Miami area.

[stevenash]

You aren't getting much for 200k in Florida and certainly not in the Miami area.

That's why the real estate experts say Tennessee is great, Alabama they say is the best state for fix and flips.

I dislike most of those 'flip' shows on cable, I do like the Vegas flip show, you can learn some things on that show.

I don't have the patience for real estate flips and what not, but there's money to be made, IF you know what you are doing.

[Optional]

$2,000 is probably gross before all the expenses. How much is the property insurance? You gotta look at what you might make net and how much time you will spend. Then you can see what's worthwhile. If you spend 10 hours a month that's 120 hours a year. Now value yourself at least $50/hour and that's a $6,000 expense. Include that in your net and see what your % profit is. 5%? You can earn almost that in a risk-free CD.

If you own a lot of properties and can scale it, it can make sense. But if you're trying to buy one property for extra income, it's probably not worth it when you take everything into account.

Exactly. People think it's easy money, but it isn't. In a perfect situation, it can work. But it's very easy to screw up.

a 200k home that is rented for $2000/mth really doesn't need a lot of thinking if true.

That's unbelievable rental return and positively geared so it could pay itself off and cover all expenses in around 10 years, as well as hopefully be worth over 300k by then.

How much cash are you going to need to find a month with 5% interest (thats unbeleivabley good number too btw) to end up with 300k by 2033?

A lot more than than the 20-30k in deposit and expenses it would take to buy this place.