Purchasing an investment property is an excellent opportunity to help you reach your long-term financial goals. However, choosing the right investment property to reach those goals requires serious consideration to mitigate your risk and maximize the profitability of your investment.
We're answering some of our most frequently asked questions including the biggest factors to consider when evaluating investment properties to purchase.
The area where you purchase your rental property plays a significant role in:
Try to select a quality home which is well maintained or can be renovated to ensure the sort of profit margins and stable lease payments you're looking for in order to optimize your return.
Our clients ask, “How do you establish your rental rates once you’ve settled on an area:
Once you’ve narrowed down your search to an area of a city or a neighborhood, the next step is finding the property and getting it leased to the right tenant. Every investor should figure their possible rate of return relative to their:
Buying a duplex can be a lucrative opportunity because it generates more than one income source to pay your expenses.
Contracting Property Management services can be a great way to promote your rental home, screen potential tenants, collect rent payments, and ease the maintenance and upkeep of your investment. This is especially convenient if don't live nearby your investment property. Request a consultation with our Property Management team.
Our clients ask, “What are renters looking for in a home?”
Our customers ask, “What qualities should I look for in an investment property that would make it a good rental?
Keep it simple and make sure it is clean. Washable paint and tile floors will help with upkeep cost once a tenant moves out. Keep it low maintenance, but maintain the property - keeping it in good condition.” Ron Ricketts, Property Manager with ERA Grizzard Real Estate Property Management.
When you shop for an income property, prioritize utility and durability over your personal style. Ensure interior flooring will stand up to wear and tear. A fresh coat of neutral paint, quality window coverings and efficient lighting will go a long way towards getting your property rented.
Before purchasing your investment property, you'll want to have a long term understanding of how your income could grow, relative to operating and maintenance costs.
Try to find an investment property where affordable upgrades can enable you to charge higher monthly rents. Monitor local rent averages in the community throughout the life of your rental to avoid pricing yourself out of the market, having a tenant moving to a comparable rental with a lower rate, or undercharging.
Before purchasing an investment property, you should consult with a Realtor or Property Manager on Florida tenant laws as they apply to you as a landlord and your tenants. It’s important to know about rent increase notice terms, your rights to enter your property, and terminating the lease with or without cause.
Searching for an investment property can be challenging if you try and go it alone. Determining the best location, type of home, and interior/exterior features can be a tough task for first-timers or out-of-state landlords. Partnering with a Real Estate brokerage with agents that specialize in rental properties as well as professional Property Managers can protect your financial interests.
Thinking about purchasing an investment property (or properties) in Central Florida, but don’t know how to get started? View our full brochure to learn about our property management solutions or request a consultation with a member of our Property Management team.
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