Ted and Jamie Garber own 28 rental units in Florida, focused on cash flow and ROI.
They started investing in 2020 to create additional revenue streams.
They are looking for undervalued properties in their market that meet the 1% rule.
Ted and Jamie Garber, two real estate investors, have specific cash flow and ROI goals for each of their rental properties.
“Each lease should generate immediate cash flow and, on average, pay back our initial investment within three to six years,” Ted told Business Insider, adding that they treat each unit like its own microbusiness.
A Florida couple began buying a rental in 2020 to create an additional revenue stream and accelerate their progress toward financial independence. By 2025, they have 28 units in 15 commercial and residential properties, which BI confirmed through the Brevard County Property Appraiser.
Their average cash-on-cash return is just north of 20%, Ted said.
To guarantee immediate cash flow, they’ve narrowed their “buy box” — the set of criteria they want a property to look at before buying. Here is exactly what they are looking for.
1. Their backyard property. The Garbers, who live on Florida’s east coast in Brevard County, like to keep their investment property close to home — at least for now.
“We’re still focused on our backyard. It’s still appreciated. It’s still in high demand,” said Ted, who manages 15 properties each. While they may eventually want to expand into different markets, there is ample opportunity on the Space Coast to keep them busy for the foreseeable future.
2. Affordability. “Our buy box is affordable housing — not low, not high — something that just the everyday person can afford,” Ted said, adding that they prefer to rent at or below market rate. “It allows us to get more applications to be able to pick and choose our tenants. And, our tenants value the fact that they’re renting slightly above market rate, so they want to take care of the space. They’re getting a deal, and we’re still making money from it all.”
3. Depreciated properties. One of the reasons a couple can make an offer at or below market rent is because they won’t buy unless they secure the best deal. They subscribe to the principle that “you make money by buying,” Ted said.
To find undervalued properties or negotiable deals, “we’ll look for things that have been sitting for a while — maybe the marketing wasn’t very good or it needed a cosmetic renovation,” Jamie said.
Ted added that they’re not looking for a big renovation project: “Part of the buying box is looking for value-added things like small elevators, paint and floors. We also look for listings that don’t have great pictures and aren’t marketed correctly.”
Garbers constantly look at listings in their area. When they find something in their buy box, the next step is to see if the property satisfies the “1% rule.”
This rule of thumb suggests that to create positive cash flow, your property’s monthly rent should be at least 1% of the purchase price.
“So, if you’re looking at a $120,000 condo, you need to be able to rent it for $1,200 a month,” Ted said, noting that with rising interest rates, insurance rates and condo fees it’s become more difficult to satisfy this rule over the past few years. They would ideally have a buffer: for example, $1,500 a month for a $120,000 condo rent.
They already have the advantage of owning many long-term rentals and understanding the typical rental rates in their area, but you can use tools like Zillow to get a feel for rentals in your market.
While their main focus is on cash flow, they are reaping additional benefits from owning real estate.
“There’s appreciation—adding to your net worth and your end goal; depreciation, so the ability to offset your income and your taxes; and then the other main benefit is that your tenants are paying your mortgage for you,” Ted said.
“If we factor in all those other things, we’re at over 30% return on investment in the portfolio.”
This article was originally published in September 2025.
Read the original article on Business Insider
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