6 Things You Need to Know About Buying Investment Property in Florida | alecsalameh.com
When it comes to searching for investment property in Lee County FL. and the surrounding area, you need to have a solid understanding of the local market. The market in one city is going to be completely different than the market in another. On top of that, the market fluctuates regularly, meaning that the market may look very different today than it will in a few months. Keeping this in mind can be helpful when buying investment property in Florida.
In addition to the ever-changing market landscape, you need to consider the different aspects of what to look for in an investment property, how the property can benefit you, how you plan to use the property, and more.
What Are The Upsides To Buying Investment Property In Florida?
The sunshine state has so many wonderful benefits, especially when it comes to investment property. Every year more and more people move to Florida, whether for work or to enjoy the all-year-around sunny weather. On top of this, real estate transactions are relatively painless and easy, especially when compared to other states. Plus, Florida offers one of the best return-on-investment ratios in the country when it comes to real estate. When considering buying investment property in Florida, the benefits are fantastic.
What To Look For In An Investment Property
Whether you’re considering your very first investment property in Lee County, Fl. or you’re a seasoned pro, you need to know what to look for in an investment property. Not only is this a big expense, but it’s also a long-term investment. Make sure you do your research on the properties you’re considering and have a keen eye for detail as you look at properties.
Cost Compared to Current Market
One of the deciding factors that may come up is the cost of the properties you’re considering. However, make sure you don’t only look at the final cost of the property itself, but how it compares to the current market and similar properties in the area. While an inexpensive property is enticing, it’s important to find out why the cost is almost too good to be true. Even if you’ve done your due diligence and had an inspection done, with fantastic results, it’s a good idea to discuss under-market pricing with your real estate agent. They may know more about the property or be able to give you insight as to the low cost.
Flaws, Repairs, and Run Down
A low-cost investment property may simply be priced under market value because it has flaws, needs repairs, or is run down. While this doesn’t necessarily mean that the property is problematic, it can lead to issues in the future. Make sure you fully understand the repairs needed or the flaws in the property before making the purchase.
For example cracks in the foundation, depending on where they are or how big they are, may not be an immediate issue. In fact, this may be something that you overlook. But in the long run, how much damage can those cracks cause? Could those cracks lead to the property being unusable in five or ten years? Keeping these things in mind can help you steer clear of properties that aren’t going to work for you.
When considering buying investment property in Florida, make sure you consider the appreciation potential of each property you look at. While it’s nearly impossible to accurately predict what the market will do several years down the road, it’s not difficult to take a look at historical data. Have properties in the area you’re considering gone up or down in price over the last few years? Who is moving into and out of the city? Is there something that will encourage or stifle growth? These things can help you identify if there’s good appreciation potential for the property you’re considering.
While you may have considered the big issues on the property, such as cracks and other repairs, have you considered what the regular maintenance of the property looks like? Not all properties need the same kind of maintenance. An older property is likely to need more regular repairs and updates, whereas a new property may end up being essentially maintenance-free for years. Don’t forget that keeping up with the maintenance and repairs on the property costs time, money, and effort. Take these calculations into consideration when considering an investment property.
Location, Location, Location
As with any type of property purchase, choosing where to buy investment property is an important step. However, you need to take a close look not only at the city but also at the neighborhood you’re considering. When looking at the location, think about the demographics of the area. If it’s a family-friendly neighborhood with a lot of noise and kids, you may want to consider somewhere else to invest in a retirement property. Knowing the demographics of the neighborhood can help you identify the types of renters you’re interested in, and vice-versa.
Other aspects of the neighborhood to keep in mind include the crime rate, local schools, nearby shopping and amenities, and the job market of the area. All of these factors are what potential renters are going to look at, which means that you should be considering them, too.
As you’re looking at different investment properties, one big consideration is who is going to manage the property. If you plan to manage it yourself, keep in mind that this is going to require a lot of time, effort, and work. On the other hand, working with a property manager will cost money, which can eat into your profits on the property. It’s important to know your own limits, and whether you’re more interested in saving your time or your money on this piece. If you live in a different town or state than the area you’re considering, working with a property manager is crucial. Even if you’re in the same town, however, a property manager can ensure that everything is taken care of to your satisfaction.
Investment Real Estate Agent
When you’re ready to take a look at an investment property in Lee County Fl. make sure that you’re working with a real estate agent that not only knows the area but what is needed when it comes to buying investment property in Florida. We specialize in investment and commercial properties, and can easily help you through the process. Contact us today for more information on how we can help you find the perfect investment property!