Factor in financing to see your actual return on invested capital in Lake City.
$
$66,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.69%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$74,200
$66,250 down + $7,950 closing
Monthly Mortgage
$1,296
on $199K loan
Monthly Cash Flow
$-414
after all expenses
Annual Cash Flow
$-4,964
before taxes
Cash Flow Breakdown
Monthly Rent$1,520
Less Expenses−$638
Less Mortgage−$1,296
Monthly Cash Flow$-414
Is Lake City a Good Place to Invest in Rental Property?
Lake City, FL has a population of 50,000 and has been growing at 1.9% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $265,000 paired with median rents of $1,520/mo produces an estimated cap rate of 4.87%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.2x, homes cost about 5.2 times the local median income of $50,639. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.7% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: Lake City presents moderate opportunities. Cap rates near 4.87% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.