A Florida investor explains how he bought 3 condos for $360,000 and turned them into cash-flowing rentals using the 1% rule

Florida-based couple Ted and Jamie Garber own more than 20 rental units in Florida.

Ted Garber Florida-based investor Ted Garber walks Business Insider through one of his deals.

He bought a 3-condo portfolio for $360,000 in 2022.

He shares how he financed it and turned it into a cash-flowing asset.

Ted Garber did not set out to become a long-distance landlord, but after struggling to find the cash flow he wanted close to home, he broadened his search.

Looking at neighboring counties "really opened up the opportunities for us," the part-time investor, who has built a portfolio of Florida rentals alongside his wife, Jamie, told Business Insider.

In September 2022, the Garbers bought three occupied condos listed together for $360,000.

The properties were about a 90-minute drive from their Florida home.

It was their first out-of-area acquisition — and an experiment to see whether they could self-manage rentals without being on-site regularly.

Four years later, Garber said they have visited the properties just once and spend less than an hour a week managing their broader portfolio of 29 tenants.

He opened the books on the deal and shared how he picked the condos, financed the purchase, and turned the portfolio into a cash-flowing asset.

BI verified the purchase and the Garbers' ownership of the three condos by reviewing the final ALTA Settlement Statement and new landlord letters showing the rent for each unit.

A portfolio that passed the 1% rule Garber found the three-condo portfolio on LoopNet, where the listed gross rent immediately caught his attention.

At the $360,000 purchase price, the condos generated $3,675 in combined monthly rent, just over 1% of the price.