Home > Blogs > Should I Buy the Biggest, Nicest House on the Block?
30,358 views

Sandy Shores Melbourne FL Realtor's Blog

By Sandy Shores, Broker | Broker in Melbourne, FL

Should I Buy the Biggest, Nicest House on the Block?

Should I Buy the Biggest, Nicest House on the Block? 

Should I Buy the Biggest, Nicest House on the Street?

Brevard County Real Estate and Investing

We have been getting calls from investors that are looking to purchase investment property. They want to take advantage of our low prices and interest rates. Some want to buy a beautiful house in a beautiful neighborhood, with top of the line appliances and amenities. The feeling is that the nicer the property, the better clientele will be attracted to the property, so the more money they will collect in rent, thus the more money they will make.

There are many fallacies to real estate investing, and owning the nicest and biggest house on the block is one of them. 

Real estate is local in nature. And, each market across the country is different. So, I can only speak about and from my experience with Brevard County Florida real estate.

Real estate investing is all about the numbers. If the figures don't work on paper, forget it.  The property should bring you positive cash flow, today. Not tomorrow. Don't buy with the thought that,  ‘I'll hold it, and make a bundle when I sell.’  Look where that thinking got investors in 2005.  Stuck. Remember, tomorrow doesn't always come in investing. Besides, in real estate investing, you make your money when you buy, not when you sell.

Houses in our area for over $1000 a month are difficult to rent and keep rented.  Often they sit empty for months, awaiting that “perfect” tenant.  The taxes and insurance are high. Often they have association fees. But, what is a perfect tenant?  Some owners have told me that they want only tenants with no children (we aren’t allowed to discriminate, unless it is an adult only community), no pets, non smokers and perfect credit. In my opinion these qualities don't make a perfect tenant. People with perfect credit don’t need to rent for an extended period of time, and will quickly move to buy a house. Then, a vacancy will gobble up an investors cash flow.

Bigger houses in an area where there are some small houses, will help pull those values up on those small houses.

Today, many of the calls on rentals that we get come from prospective tenants with blemished credit, due to an unforeseen short sale or foreclosure.  If the rest of their credit looks decent, and they have good solid job history, often these people make exceptional tenants.

For me, as a landlord, I prefer smaller properties in the $650.00 to $850.00 price range. Smaller houses rent for more money per square foot than larger houses. Currently, in our area, this price range is where a high percentage of tenant calls originate. There are a larger number of tenants that qualify for these properties, as the rent is more affordable. They stay rented for longer than larger properties and the taxes and insurance are less than on a larger property, often with no association fees.

It’s a great time to invest in Brevard County Florida real estate. But, do your homework first.  It's not about how big and beautiful the house is. Sometimes the ugliest cow in the barn makes the most milk.

And remember, not everyone is cut out to be a landlord.

Before Buying an Investment Property Do the Math First

Search Brevard County Real Estate

Melbourne FL Real Estate, Sandy Shores, Realtor

Let me Sandy Shores Melbourne FL Realtor that for you

Sandy Shores Melbourne FL Realtor

Sandy Shores, Melbourne FL REALTOR®

Specializing in Residential, Investment and Relocation Real Estate

Melbourne Real Estate / Palm Bay Real Estate

321-253-4545

SandyShoresMelbourne@hotmail.com

____________________________________________

Serving Brevard County Florida for 15 Years

 Brevard County Resident for 36 Years

Melbourne, Palm Bay, Suntree, Viera, Rockledge,

Cocoa, Canaveral Groves, Titusville, Mims, Melbourne Beach,

Indialantic, Indian Harbour Beach, Satellite Beach,

Cocoa Beach, Cape Canaveral

______________________________________________

I buy, sell, rent, own and manage Investment Property.

Sandy Shores Active RainSubscribe to my Blog - Sandy ShoresSandy Shores Facebook AccountSandy W Shores TwitterSandy Shores FlickrSandy Shores Linked In profile

 

Comments

By Allan Erps,  Wed Mar 23 2011, 11:20
Interesting and informative post, thanks!
By Sandy Shores, Broker,  Wed Mar 23 2011, 14:47
Allan, Thanks for stopping by!

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer