1. Investment Buyer’s Guide
Creating Confident Real Estate Investment Solutions
Long-Term Investment Properties
Spring 2015

2. Income Rental Properties: Benefits of Buying
 Monthly rental income
 Long-term appreciation
 Potential tax benefits
 Diversification of investment portfolio, control and asset

3. Have a Plan: Basic Business Plan Will Work
First-Year Income Expectation
How many years do you want to hold the property?
What is good ROI for you?
How much do you want to invest?
How much to put aside for home maintenance and vacancy?
What is the reasonable prospects of the real estate market to
continue?

4. The Rental Investment Property
Do Your Research and Know Your Market

5. Gross Potential Income : Numbers That Matter
Rental income
+
Vacancy Loss
--
Payments
--
Expenses
--
Cash Flow
=

6. Gross Potential Income : Numbers That Matter
Standard 3/2 home in Davenport, FL.
Built in late 90s to early 2000s at: $150,000
Average rental rate for the Polk and surrounding counties for
3/2 (no pool) : $1,100.00
Cash investment of $50,000 ; carry a 30-year fixed mortgage
Loan Information
Loan amount $100,000
Annual interest rate 5%
Number of months 360
Monthly principal and interest
payment
$536.82
Monthly property taxes $86.50
Monthly hazard insurance $83.33
Monthly PMI (if applicable) $.00
Total monthly payment (including
taxes, insurance, and PMI if applicable)
$706.65
Estimated monthly mortgage payments: $706.65 (including tax, insurance, interest)
Annual mortgage payments: $8,479.80 (including tax, insurance, interest)
Gross Potential Income
Rental Income $13,000.00
Annual Mortgage $8,479.80
Vacancy Rate $650.00
Annual Maintenance Fund $650.00
Annualized Gross Profit $3,220.00
Return on Investment
ROI on $50,000 (cash) 6.5%

7. Why Central Florida?
Why Central Florida?
 Affordable real estate market
 Good inventory of properties after market correction
 Slow growing wages in market place and transient making it a desirable rental
vs purchase market
 Low income for median family with continuing growing service industry
 Understand going rates and tenant quality

8. Haines City
Population 15,694
Median Household
Income
$37,282
Average Household
Net Worth
$260,595
Long-term Residents
(5+ years)
33%
Annual Turnover 17%
Median Age 34 years
Davenport
Population 2,673
Median Household
Income
$54,961
Average Household
Net Worth
$350,141
Long-term Residents
(5+ years)
21%
Annual Turnover 22%
Median Age 47 years
Median household income for Davenport is
$54,961; 25% higher than that of Polk County
($43,838).
Median household income for
Haines City is $37,282; 15% lower
than that of Polk County
($43,838).
Income data for Haines City, Davenport and Poinciana is source from census, 2014
Poinciana
Population 47,086
Median
Household
Income
$46,003
Average Household
Net Worth
$288,688
Long-term
Residents (5+ years)
34%
Annual Turnover 19%
Median Age 37 years
Median household income for Poinciana
is $46,003, which is 0% lower than that
of Osceola County ($46,201).

9. Understanding Regional Properties
Maintenance Concerns:
• Roofs
• Air-conditioning Units
• Termites
• Mold
Knowing your property and understanding the region it is
located in, will better help you make wise choices as an investor.

10. Understanding Benefits of cash and leveraging properties

11. Exit Strategy: Sell to rent or another investor
Long-Term Investor
(Moderate-Low Risk)
More than three years from
possession of asset
Exit Strategy:
Banking on the fact that property values appreciate
over a longer time with investments providing the
consistency of monthly income as well.

12. www.FloridaSpiritHomes.com
Visit Florida Spirit Real
Estate website
Inquire about properties
Request info; research
market info
Look at properties in
Davenport, Champions
Gate area via web
Talk with a trusted
Florida Spirit Realtor