Your best bet for determining the most advantageous investment properties to purchase would be to choose a Realtor you trust and have a discussion with him or her about your situation and expectations.
Chad Gray PA, Realtor
Luxury Living Fort Lauderdale
Coldwell Banker Residential Real Estate
100% of clients rated our service as "EXCELLENT"!
Bottom line is if you...
- understand numbers
- are a competent organiser/manager
- are service minded
- buy the right condo
- buy the right location
- pay the right price
then you should be able to make an attractive ROI. For example, if you're sharp and you know what you're looking at you can buy condo hotel units for between 175K-250K self manage, achieve 90% occupancy and earn 35K-45K per year after HOA, property tax and insurance. But you need to be on the ball and you will be nagged by permanent phone calls from interested clients.
I have managed residential income properties for over 15 years and obtain many of my clients after they have tried and failed at self-managing their own properties.
It is a full-time job that requires you be on top of things 100% of the time.
Licensed Property Manager
Metro Residential LLC
Fort Lauderdale, FL
â€¦Vero Beach. Business Insider has ranked Vero Beach 5th in country when it comes to five-year appreciation. Or, in other words, if you own a home here now, your homeâ€™s value will do some of the fastest climbing in the country by 2017. Just how much climbing are we talking? According to Business Insiderâ€™s projections, Vero Beach homeowners can expect their home values to go up 8.7% each year for the next five years. So, if your home is worth $100,000 today, it will be worth $143,500 by 2017. Vero Beach isnâ€™t the only small Florida metro getting some love from Business Insider, though. Theyâ€™ve also got Panama City and Ocala ranked in their top 10.
My advice is to remove condoâ€™s completely from you list of options. Condominiumâ€™s inherently present issues for the buy and hold investor. Many associations have strict policies when comes to renting your unit. Most would require that you occupied the unit for 1 year before renting, many have rental unit percentage caps which could force you to be place on a â€œrentalâ€ waiting list after your waiting period, and in my experience, boards can make the tenant approval process less than accommodating. Add these â€œloss of rentâ€ factors to increased expense due to association fees, and condoâ€™s become less attractive as long term, cash generating investments.
Please feel free to contact me. I am an Investor Certified Specialist and I have a FREE Investor Training Center, and Investor Tools for your use at http://danobrianrealtor.com/dan-obrian-realtor-investor-center/
Daniel OBrian, OICP
Henri Frank Group â€“ Remax Preferred
2166 Wilton Drive
Wilton Manors, FL 33305
Then, look at a multi-family property that fits within the price range you have in mind. Your expenses will included taxes and insurance.
Then, compare the expected rate of return on the condos against the expected rate of return on the multifamily property.
If your condo is empty, there is no income on it. If you have a four-plex, for example, and you are lacking one tenant, you are still bringing in income.
Long term, you are probably best off with a multi-family property because you are able to calculate the expenses on a long term basis. With a condominium, you have no idea where the condo fees are likely to go. Usually, that direction is up. And if you purchase condos in distressed buildings where there are numerous foreclosures and short sales, that means large numbers of owners are not paying the condominium fees.
Those fees are necessary to cover the expenses of running and maintaining the condo. If you are an owner, you may find your assessments rising because someone has to pay the condo fees. Those who are committed to the condo are the most likely to continue payment because they know that if they don't the value of their investment will continue to fall.
Your multi-family property has fixed expenses: taxes, insurance, and reserve for repairs. Eventually, you will have to fix things, but if you maintain a steady reserve year after year knowing that that money will be needed over time, you are likely to make a profit on your investment.
If you purchase for cash, your cash on cash returns are likely to be lower, and you will lose the tax advangages of leverage. If your credit is sufficient, you may want to purchase using a mortgage -- typically you will need to put at least 30% down -- because your cash on cash return, in terms of percentage, is likely to be higher.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
All given answers below are right but because you are looking for "an investment" doesn't mean that all investments out there in SE Florida will necessary be good for you. There are too many variables to determine what would the perfect investment be for you.
Condos are not such great investments because of the tedious HOA with difficult renting restrictions and limitations. Single Family homes are better cause you set your own rules. However,
our present inventory in the under $125K market value in all SE Florida is pretty much depleted and what' left, most of them, need tons of work. A single multi-family investment at $400 - 425K may be a better choice.
I would love to help you find investment property here in South Florida as I get properties that are listed and properties that are not listed. I can help you find great investment properties as I work witg plenty of investors that deals with anything from apartment buildings, duplexes, and SFH with great cap rates.
I look forward to working with you and welcome to South Florida
Keller Williams Realty
Century 21 Birchwood, Inc
4040 Del Prado Blvd S
Cape Coral, FL 33904
As an investor, I will NEVER buy any property that has a HOA/Condo Assoc. which take an additional 4 weeks to screen my tenants, once I find a worthy one.....
Meir Aloni & Team
CRS (Certified Residential Specialist)
CDPE (Certified Distressed Property Expert)
RECS (Real Estate Cyberspace Society)
Successfully selling Broward County since 1986!
Direct phone# 954-338-5220 http://www.WeSellBroward.com
All Star Realty Inc.
My advice as a Mortgage Broker and Investor is to stick with either single family free standing homes (3/2/2) of a separate townhomes in deferent locations.
2. quality of clientele
3. ease of financing, at purchase and for potential buyers
4. PIA factor
Pro Option Mortgage/ Florida
Ph: 888 662 4404
Prior Service U.S. Marine Corps
Missing this critical data, what you are proposing can be the classic presentation of invalid choices. So, I flipped a coin - multi-family wins.
You've likely heard the expression, "location, location, location...." This doesn't change when considering investment property. We also always recommend that when buying, buyers consider the resale potential for the subject property. You may not be considering selling now but this too could change. Thus your decision should include more than price and opportunity.
We understand that you are not in need of an agent at this time but in an effort to protect your best interests, sooner would be better than later.
Julie Rosenthal (561)827-6789
Property Brokers International
I work with several investors such as yourself. You may find that investing in multi-family properties would give you the greatest leeway on who you can rent to, and give you the opportunity to rent multiple times should you find that your tenant is not paying their rent on time.
You will also not have to worry about condo or homeowner fees. Your cost will be limited to propert taxes, electricity, and water for the common areas.
If you would like more information you contact me directly at: