Never Pay Rent Again [Orlando] | Ken The Property Queen

Watch the full video on youtube with this link.

My name is Ken and I’m the founder and CEO of Property Queen and I’m here to talk to you about NPRA (Never Pay Rent Again). We’re going to talk today about how to Never Pay Rent Again and buy a house right here in Orlando for a very low down payment and have your residents, your renters, or your roommates pay your rent for you. NPRA! NEVER PAY RENT AGAIN.

For those of you that are ready to stop paying rent and get into the house hacking and wealth-building sphere, let’s go. 

Let’s talk about three properties that we’re going to look over to evaluate as possible places for us to move into. These are primary residences for us to move into and to live and I’m going to use an FHA mortgage (Federal Housing Administration) to purchase the property. So, let’s go over some numbers to see how to never pay rent again. 

6121 Holiday Hill Lane Orlando FL 32808

This property is currently on the market and the reason I chose this property is that it is in pretty good condition and there are several bedrooms. It is an older house and has a fabulous master bath with five bedrooms and three baths. You could potentially live in one room of this property and then rent out four more rooms! 

Some quick and dirty math – total purchase price is $223,999. A down payment for this property is going to be 3.5% (if you have more questions about this, go read the NPRA book on Amazon), but understand that FHA mortgages, no matter if it’s a single-family home, duplex, triplex, quadplex, it’s always a 3.5% down payment. So, before you start hunting, go get prequalified. Go call a mortgage broker or contact us here at Property Queen and we will help you find a mortgage broker who will help you get prequalified for an FHA loan. 

So, you need a little under $8,000 to buy this property (for all of these, we will always use an FHA loan to purchase a first home and a primary residence to move out of paying rent and into a property). Again, this one-unit single-family home has five bedrooms and three bathrooms (SFH is the abbreviation for single-family home). We can assume that if you rent out those other rooms to roommates, you’re going to get about $500 per month which will total you about $2,000 per month of income coming in from renters on the property. 

And your mortgage payment (which we got from the mortgage calculator on www.bankrate.com) would be around $1,393 per month (assuming we put down $7,840 with a 3.5% mortgage rate).

So, that leaves you with a net monthly revenue of $607 per month. Let’s get that right. You live for free (your residents pay for all of your mortgage) and then, you get an extra $607 per month on top of that! Annually, ($607 x 12) you will make $7,284. Remember that you put down $7,840, so you will get back (after expenses) a cash-on-cash return of 92.91% return on your investment. That’s how much money you make on your money! 

Now, cash-on-cash is hard to understand, but just think of it like this. You can read all about it in the NPRA book on Amazon, but it all boils down to the fact that you put down $7,840 and you get back (in rent at the end of the year) $7,284. 

Not bad – a 92% return! Show me a 92% return in the stock market that also provides you free housing...

1034 18th Street Orlando Florida 32805

Let’s go to the next property. This one is a duplex, so it’s a little bit different. There are actually two units on the property and it’s fully renovated, fresh, and ready to be moved in to. If you look at the property details, it says that the front house is a two-bedroom and one bath unit and the back house is a three-bedroom and two bath unit. So, you could live in one house and rent the other one! 

So, $225,000 is the purchase price with a down payment of $7,875 which leaves you with a monthly mortgage that is $1,398. This is a duplex that has two entire homes under one price. So, for this one for your monthly rent, we will assume that you rent out the three-bedroom unit. You could get a roommate and get another $500 per month, but let’s say that the average monthly rent is $1,500. How do we get that number? 

Well, go to rentometer.com which is free to use online. You can enter the area, the bedrooms, and the bathrooms, and it will let you know what the average rent is for the area. Just be cautious because you’ll see the average jump around based on your parameters, but it’s still useful. So, according to this website, a three-bedroom and two-bathroom unit would rent for $1,500. 

Again, that mortgage payment is $1,398, so you will walk away with a total of $102 – cash in your pocket – per month! You are going to have a $1,224 income per year with NO RENT PAID! NPRA! Remember that you are never going to pay rent again! That will also give you a 15.54% return on your money on that $7,875 down payment you put down. You get $1,224 back and by the way, BIG FAT $0! You pay $0 in rent. Amazing, right? 

5045 Old Cheney Highway Orlando Florida 32807

Let’s go to the last deal. This one is very attractive to me because it has multiple units. And, of course, when you have multiple units, you can raise the rent over time incrementally. Meaning - when one resident moves out, you have the opportunity to move the rent up by 3% or 5%, without worrying about your expenses as the other units pay the bills . So, this is a single-family home (SFH) in a very nice condition, with two additional multi-family properties on the land. One large house with two income-producing duplexes each with one bedroom and one bath. Amazing! You could live in the large unit and then you can rent out both of the one-bedroom units on the same plot of land. 

So, the total price of the unit is $336,900, so that brings us to an $11,791 down payment (3.5%). When you put the area and the number of bedrooms and bathrooms into www.rentometer.com, you see that the average rent should be around $1,300 per unit (to be conservative). So, if we live in one of the units, the other two units would bring in $2,600 per month ($1,300 x 2) and that monthly mortgage payment would be $1,945. So, by living in this two-bedroom and two-bathroom home and renting out these other two on- bedroom units, you walk away with $655 in your pocket every month! $0 paid! Not bad. 

Your annual net revenue (after expenses) will be $7,860 with a 66% cash-on-cash return. That’s with NO RENT, and money in your pocket. Pretty sweet huh?

All right, team, so that is our NPRA Orlando blog this week. I will come to you each week showing you three new properties in your local area. You can go buy with 3.5% down using an FHA mortgage and you can go live for free! Check us out at propertyqueen.co if you’re interested in buying. We have realtors that we partner with to help you get this done that understands the concept of Never Paying Rent Again! And if you’re interested and you want to learn a little bit more, you’re more than welcome to go online and check out NPRA on Amazon. 

Bonus: Fun rules about an FHA Mortgage

You can have a very low credit score and your family can give you the money as a gift! That’s why I always use FHA mortgages because no matter what, it’s always 3.5% of that property. So, think about your savings account. How much is your savings account earning you? 2%? 3%? I can show you a way with NPRA to earn 60%. Shouldn’t you do it? And don’t even think about the fact that you’ll never pay rent again! Think about how valuable that will be to you!