Couple earning six figures from 28 rental units explain how they use ‘shopping box’ to ensure positive cash flow

• Ted and Jamie Garber own 28 rental units in Florida, focusing on cash flow and ROI.

• They started investing in 2020 to create an additional income stream.

• 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 hire needs to throw cash immediately and, on average, it pays back our initial investment within three to six years,” Ted told Business Insider, adding that they treat each unit as if it were its own miniature business.

The Florida couple began buying rentals in 2020 to create an additional income stream and accelerate their progress toward financial independence. As of 2025, they have 28 units across 15 commercial and residential properties, which BI confirmed through the Brevard County Property Appraiser.

Their average cash return is just north of 20%, Ted said.

To guarantee immediate cash flow, they narrowed down their “shopping box” — the set of criteria they set out to see in a property before buying. Here is exactly what they are looking for.

1. Properties in their backyard. The Garbers, who live on Florida’s east coast in Brevard County, like to keep their investment properties close to home — at least for now.

“We’re still focused on our backyard. We still appreciate it. It’s still in high demand,” said Ted, who manages each of their 15 properties. While they would eventually like to expand into different markets, there is enough opportunity on the Space Coast to keep them busy for the foreseeable future.

2. Affordability. “Our shopping box is affordable housing – not low, not high – something that only the everyday person can rent,” said Ted, adding that they prefer to rent at or below market rates. “This allows us to get a lot of applications so we can really pick and choose our tenants. And, our tenants value the fact that they’re renting slightly below market rate, so they’re going to want to take care of the place. They’re getting a deal, and we’re still making money from it all.”

3. Undervalued properties. One of the reasons the couple can offer at or below market rent is because they won’t buy unless they’ve gotten an excellent deal. They subscribe to the principle that “make money on purchases,” said Ted.

To find undervalued properties or bargains, “we 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 major renovation project: “Part of the shopping box is looking for a smaller elevator, value-added things like paint and flooring. We also look for listings that don’t have the best pictures and aren’t marketed correctly.”

The Garbers are constantly looking at listings in their area. When they come across something in their shopping box, the next step is to see if the property meets 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 condo that’s $120,000, you want to be able to rent it for $1,200 a month,” Ted said, noting that it’s become more difficult in the past few years to meet this rule with rising interest rates, insurance rates and condo fees. They ideally have a buffer: For example, renting a $120,000 condo for $1,500 a month.

They have the advantage of already having several long-term rentals and understand the typical rental rates in their area, but you can use tools like Zillow to get a handle on the rent in your market.

While their main focus is on cash flow, they are enjoying more benefits than owning real estate.

“There’s appreciation – which adds to your net worth and your end goal; depreciation, so the ability to offset your income and your taxes; and then another major 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 across the entire portfolio.”

This article was originally published in September 2025.

Read the original article on Business Insider