Florida couple bought 3 condos for $360,000 and now collects $4,530 a month in rent: How they built a 'very healthy' rental portfolio

A Florida couple bought three occupied condos for $360,000 in 2022, and the properties now generate $4,530 a month in rent. The investment, located about 90 minutes from their home, has become a long-distance rental success for Ted Garber and his wife, Jamie. At the time of purchase, the three condos brought in $3,675 in combined monthly rent, slightly more than 1% of the purchase price. Four years later, Garber says they have visited the properties only once while continuing to collect rent and build equity.

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Garber found the properties on LoopNet and it was the combined rent that immediately caught his attention. The three condos were generating $3,675 in monthly rent when he bought them for $360,000. That meant the monthly rent was slightly more than 1% of the purchase price, passing one of his first tests, i.e. the 1 percent rule.


The rule is a simple way for real estate investors to screen potential rental properties. It suggests that monthly rent should equal at least 1% of the property's purchase price. Garber also believed the rents were below market and could eventually be increased. The condos were initially listed for between $390,000 and $400,000. Garber negotiated the price down to $360,000. "I always negotiate. If it's really a steal, I'll do full asking immediately with a seller concession or something."

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How Garber financed the $360,000 purchase

The couple used a commercial loan to finance the three condos. The loan was amortized over 20 years and carried an interest rate of roughly 5.5%. Garber said they put 25% down and invested $113,548 in total, including the down payment and transaction costs. Garber reviewed the existing leases, comparable rents, HOA finances and reserves, association rules and the condition of the individual units. His wife attended the inspection, allowing the couple to examine all three properties even though tenants were already living there.

When the couple purchased the condos, they brought in $3,675 a month in combined rent. Today, the three properties generate $4,530 a month. Their monthly expenses include:

• Loan payment: $1,744.83
• Property taxes: $500
• Insurance: $408.78
• HOA fees: $906.01

Garber said HOA fees and insurance costs have roughly doubled since the purchase because of rising insurance rates and inflation. Those higher costs have reduced the investment's returns. Still, Garber considers the portfolio "very healthy."

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Tenants are paying down the mortgage as rents rise

One advantage of the 20-year loan is that a significant part of each payment goes toward the principal, with about $721.05 of Garber’s current monthly payment reducing the loan balance. He said tenants have effectively paid down about $30,041 of the mortgage, or around 12%, over roughly four years. "We're getting monthly cash flow, and our tenants are paying off the mortgage," he said.

Garber also chooses to keep rents at or slightly below market rates, even though he believes he could charge more, because lower rents can help reduce vacancies and tenant turnover. "When you do rent to people that are below market or at market, they're really thankful for that," he said. "They take care of your properties for you a little bit better." Garber is still looking for new deals, although higher interest rates and strong property prices have made it harder to find leveraged investments offering 8% to 10% cash-on-cash returns.

He now looks for properties where he can create value through issues such as poor marketing or photos, following his simple investment philosophy: "You make money on the buy." Looking back, there is only one thing he says he would have done differently with the three-condo deal: "We would have bought more."