I’m in Florida this morning. And I am minutes away from what we think is a super hot deal. And I don’t really ever know until we actually check it out after we get it on the contract because one of my secrets is if we think its a good deal, get it under contract. Because the really best deals are scored by people who are wicked fast. And I don’t know if anyone is more wicked fast than my team. So, were going to go find out. Were going to go verify and find out.
By the way, I am in the nation’s hottest growth market right now. No area in America is actually performing as good as we are right now in this market. So, super excited to check this out and find out if this deal is as good as we think. While I chew on my breakfast, look at what my wife dished up for me. Who has sandwiches for breakfast? Nobody. Get maximum rent for the purchase price. So, what makes a house a really good deal? First of all, you have to understand when they say this old adage in real estate location, location, location. Where I am driving to right now, it’s not about at first how good the deal of the house itself is. It’s way more about the location that the deal is in. So, when I start at my portfolio I did backyard real estate.
And you can find good deals in your backyard. But if you think about it, America as a whole is made up of 324markets. And they are not all created equal. Some markets are literally better than others. And there’s a handful that is significantly better than the rest. This morning, I am in the Orlando area, and I have certain zip codes in areas that I buy in where we literally get the greatest growth. Were actually coming into the neighborhood right now. And right now, if you think about the 350 million people that occupy this country, I’m right now about to look at a house then may or may not be a good deal. But here’s what I do know: In the nation’s hottest market, I’m going to have half of my ROI contribute just to the fact that I’m taking advantage of appreciation. And since 1963 US Census Bureau, says that real estate on average goes up 4 ½ a year.
So, if I put a deposit downpayment on real estate and I hold it for 5, 6, 7 years as I do, then I going to have a huge part of my ROI just from buying in the right location. If you’re watching this video thinking, Kris, dude, that’s big-time. Buying out of state? Because you’re probably not from Florida. I felt that way in the beginning too. I have created a whole bunch of cheats and shortcuts on how you can buy the very best deals outside of the area that you live in. And actually has more control with the superior ROI. Those links are found in the description below. So, if you get curious, check those out. Just a lot of free resources to help you succeed in this. So, check it out. I’m here with Vivian and that she’s one of the rock stars. Part of our team of 200 experts that help us around the nation buys the very best homes.
So, we got this one on the contract. Were going to find out, today, were going to find out if its actually a good deal. The first thing that happens when you sit down and talk to a realtor who is really essential important one of the team is they give you an MLS listing. But I’m not interested in this. I actually have my own formula. So, I’m going to look at my own performing here that factors into this. Alright. So, 2007 means that this house. I mean it’s not very old. And 3-bedroom, 2-bath is almost what all of these are. And you can tell what they’ve done here is they’ve redone the floor. I mean, bottom line these are really great entry-level homes.
Now, one of the reasons why I’m looking at this particular house sitting what I’m verifying is I already know that everything makes sense. I’m making sure that the condition of the home is what I needed to because of that the last thing that I check off the list. But a home like these rents will just shy ass $1,700 a month. We get maximum rent for the purchase price which means that we’ve got really great cash flows plus from one of the highest growth markets. So, right now, my team finds deals literally every day in about 4 different cities surrounding Orlando. And dude, that’s what was killing it every single day. So, a basic-operated master tub.
You’ve got a socket standard as they come in this house is in fantastic shape. This means that on this particular one, we are not going to have to drop a penny init from what I can tell. And this thing is… Obviously, it’s been occupied by the owner. Yeah. One-time owner? Yeah, it was at the one-time owner and they moved out just recently like a couple of days ago. Okay. So, since this is built-in 07, what about the roof? It’s a new roof. Only one year. Yep, it was replaced in 2018. Alright. AC unit? Also replaced a year ago. -Okay. So, basically everything is going to go on. Yeah. The most expensive things are already done in this house. Good. -and are the most in high ticketed. -And then projecting rents to be 16…? -…25. -1625. Alright, awesome. Right. So, guys here’s my assessment on this.
I have on my phone here in the actual proforma that my team puts together. It puts all my formulas and invasive be able to know what my ROI is. So, my cash-on-cash, that means if I put money in and buy this house, I’m expecting about a 6.99. Basically a 7% cash on cash return. But with principal reduction, its11 and a half. My total with appreciation as is32.27%. Let me just tell you what that means. 32% ROI means that you’re going to get your money back in 3 years.
Now, if you put your money in the bank and the bank is giving you a half a percent, you’re going to get your money back in like nine million years, right? Like it’s going to take forever. That’s an exaggeration. But you know if you put your money in the IRAs or 401Ks, it could take you 14 to 18 years to double your money. Whereas you can do that here in 3 years. Does that make sense? So, this house is in great condition. We’re definitely going to get this one. Were going to move forward. We’re still going to get an inspection. I want the roof looked at even though it’s brand new. I just want to make sure that everything in this house has absolutely no problems. Were going to close on it with one of my inside the next 30 days. And this is just going to be another win. I want hundreds of properties in this market not just because of its the best growth market.