I would be more than happy to assist you with this. There are a few extra things that go into getting a 55% DTI back end done but nothing to complicated and nothing that will hold up closing especially seeing as it 's a new build. Feel free to reach out to me if you are interested in talking.... more
Remodeling allowanceWe are interested in a home listed at 359,000. We have about $80,000 in proceeds from our home sale and savings. This home has been for sale for over a year, and has ranged from 330k - 400k.
It's the not the best situation, but not knowing the size of your family maybe you could stay with relatives while finding a new home. I realize most people don't want to put that burden on other family members but it could give you a little breathing room between the sell and the buy... Just a thought... more
An old question, but still a good one. About 1/4 of all my sales have been to Canadians using finance. There are no special rules for foreigners, other than what the lender might require. In the current (2015) market, try RBC USA because they will underwrite you to Canadian standards while everyone else will run you through the same system as everybody else in the US.... more
I often get questions from people who are thinking of buying a Florida home or condo to use as a rental property for investment purposes. The obvious positives to investing in real estate is that it is a tangible asset that you control. You can make money with real estate 2 basic ways - through appreciation of your asset and positive cash flow (rental income that is above your expenses).
There are a number of important factors to take into consideration when buying a property to use as a rental/investment. Some of the following will seem obvious to those who are astute at investing in real estate, the information here is for beginning investors.
My first suggestion is to learn the local real estate market within the price range you are targeting. Knowing the local market, the neighborhoods, the school districts and the inventory will give you a much better perspective as to what constitutes a "bargain" purchase price. Don't confuse cheap properties with good buying opportunities, cheap properties are generally cheap for a reason. Obviously the quality of the neighborhood is important in attracting renters. Location is also important when you consider that at some point in time down the road you may want to sell the property. If you select a location that appeals to buyers wanting to owner occupy as well as investors, you will have a much larger pool of potential buyers for your investment property. Plus, buyers planning to owner occupy are more likely to pay a higher price than investors if the home appeals to them.
Part of learning the local market is to learn the rental rates within your targeted price range/neighborhoods so that you have a good perspective as to market rental rates and demand for rental units within your targeted price/area. As a buyer you will be looking for a monthly rental rate that will cover not only your expenses (including mortgage, if applicable) but also give you a cushion for repairs and vacancies. Some experts say that cushion should be about 20%.
It helps to put together a spreadsheet for comparing properties, one in which you can factor in things such as potential annual income (minus vacancy rate), expenses such as insurance, HOA/condo fees, property taxes, maintenance/repairs, mortgage (if applicable), appreciation/depreciation, etc so that you can calculate your net operating income and return on your investment. There are sample spreadsheets (sometimes called a property investment calculator) out on the Internet that you can use as guidelines in setting up your own. Many investors in rental real estate target a return on investment of 5% - 7%, but I have come across investors that target a higher yield such as 10%.
Here's a tip about property taxes. If you are purchasing a property that had previously been owner occupied and the owners had the homestead exemption on the property, expect the property taxes to go up (sometimes substantially) on the following year's tax bill. A sale always triggers a new assessment of the property as of the beginning of the new year.
When looking at properties in neighborhoods, keep in mind that many of the neighborhoods with deed restrictions and HOAs will also have restrictions specific to rentals & may prohibit short term ones. You will also need to factor in the cost of the HOA fees in your expenses.
Bigger is not always better. You may find out through your research that there's more demand for 2 bedroom rental than 3 bedroom units.
Insurance rates will vary, older homes with older roofs will have much higher insurance rates than newer homes that were built to more current building codes. If a property is in a flood zone, be sure to check flood insurance rates as rates are going up due to recent changes to the flood program by Congress.
As a real estate agent with 16 years experience in the Sarasota - Bradenton area, I have worked off and on with investors for most of that 16 years. Some looking to fix and flip for quick profits, others looking for a rental property with good potential cash flow and steady appreciation. If you'd like to discuss specifics on investing in the real estate market in the Sarasota area, please drop me an email or give me a call.
The inventory of homes priced below $150,000 is low in the Sarasota market at this time. That is especially true for homes within the more popular school districts, where people are willing to pay more to be within those districts.
Since school districts are important for you, I would suggest going to the Sarasota county school district web site at www.sarasotacountyschools.net, research the various schools and pick your top 3 choices. Then search for homes within those specific school districts.
If you are looking into fixer-upper homes, are you planning to pay cash? I am asking because many such homes would not qualify for financing due to condition issues.
You can search a public version of our local MLS at www.myfloridahomesmls.com
If you have specific questions about neighborhoods, I've lived here 30+ years and have been listing & selling real estate here for 16+ years, so I am very familiar with various neighborhoods.