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John Bosch, Both Buyer and Seller in Long Island City, NY

I WOULD LIKE TO KNOW IF I BUY A HOUSE IN PORT RICHEY, FLORIDA CAN I RENT IT.

Asked by John Bosch, Long Island City, NY Mon Jul 16, 2007

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8
Hi Josh,

There are some great answers here. One thing I would like to mention is that in my market (MA), there are some community developments that require homes to be owner occupied, as this is a "bylaw" for particular communities, so make sure there are no restrictions where you are looking into. Best of Luck to You!

Melissa Mancini, Realtor, CBR, GRI
Web Reference: http://MelissaBMancini.com
1 vote Thank Flag Link Sun Aug 5, 2007
John,

Good morning. Would you be interested in a cash positive, long term tenant occupied, short sale home in New Port Richey ?

Steven Zimmerman Realtor
0 votes Thank Flag Link Sun Jul 3, 2011
Since I just had a client of mine asking similar questions re: renting vs. selling a home in Pasco, I thought I'd also mention my answer to her, which I blogged on Active Rain (link below). I'm working on the second part of the answer, dealing with the property management aspects to consider.
0 votes Thank Flag Link Sun Aug 5, 2007
Can you rent it? Of course. Can you rent it at a profit? Will you later regret the purchase? Those are very different questions!

The true answer will require you to formulate: 1. what you pay for the property (including equity and costs to close), 2. your cost to borrow, 3. the term of the loan and 4. the location of the home, 5. the condition of the home and state of required repairs (if any), 6. marketing costs to get it rented, 7. vacant time on the market and 8. competitive rental rates in the area.

I can tell you vacancy rates are stable (a good landlords market) and market rental rates are running .87 cents to $1.15 per foot per month. If the property is desirable you should be able to get a pretty quick rental in. But if the place is falling apart and requires a lot of repairs, if the insurance and the taxes along with the debt service eat the monthly rent then what's the point of owning it as an investment? (I'm assuming you want it as an investment property)

If you can borrow as a primary residence at a high loan to value your cash out of pocket will be less but your loan amount will be higher. If you can't then you should expect to get investor terms in which you'll have to put up around 25% down on a 5 year fixed rate amortized over 25 years. This might help it cash flow but you really need to analyze the asset on a cash on cash return basis.

If you asked a more specific question like: do we think a 1600 sq.ft. home in Port Richey can be rented for $1400 per month? I would say if it's clean, in good working condition and got at least 2 bath rooms and a garage, then yes.

Hope this helps.
0 votes Thank Flag Link Fri Jul 27, 2007
When I assist investors trying to find a home to invest in, it is important to see first how many homes are avialable for rent in the area or subdivision, along with the number of homes for sale. I then do an analysis of the absorption rate, to see how many homes are selling or renting, versus the number on the market. This gives the likelihood of renting or selling in a certain timeframe. For those investing to rent the home, we then should see what would be a realistic rent, and does this give positive cash flow.

Remember to include the mortgage payments, the homeowners insurance, the property tax and other costs, to make sure you can get enough in rent payments to cover your costs.

You can get some great deals on homes at this time and with the proper research you can do great.
0 votes Thank Flag Link Thu Jul 26, 2007
In my recent market experience lately, John, both in Pasco and Pinellas Counties there are more renters looking than buyers. Perhaps your question might be: "If I buy a house in PR right now, can I rent it and still have cash flow?" That is a different question, and the answer is: only if you can buy it under market. Rent prices are traditionally low in Pasco, and the average rents at current levels will not leave enough room to pay a mortgage on an investment house at current non-occupied interest rates.
0 votes Thank Flag Link Wed Jul 25, 2007
Most of the SFR communities in Port Richey are rentable. There are a lot of homes on the market in this area that are impacting the rental & sale pricing. The insurance for this area has to be considered and your investment would have to be long term. Most of the homes, depending on condition are around $95-$115 sq/ft and good investments, as long as it pencils out for you.
0 votes Thank Flag Link Tue Jul 17, 2007
I believe it would be rented at the right price. A Market Analysis would have to be done on the area you're interested in buying and renting. Compare your estimated mortgage payment to the currently leased amounts.

I would be glad to recommend and expert Realtor in this area.
0 votes Thank Flag Link Mon Jul 16, 2007
Herman Chang, Real Estate Pro in Palm Beach Gardens, FL
MVP'08
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