Floridainves…, Home Buyer in Denver, CO

I've thought about putting 20% down on a 100k - 300k investment property (condo) in Florida. What are the best areas of the state to look for?

Asked by Floridainvestment, Denver, CO Fri Aug 19, 2011

deals? I'm looking for areas that have been hard hit by the recession, but are also likely to come back in the next 5 -10 years. A view of the water is important, as is a safe area and good condo complex.

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In addition ot the answers you have received, I am in the Orlando market and some condo conversions are actually taking back condos from the owners and going back to apartments. You would be better off investing in single family properties. Best of luck to you.
0 votes Thank Flag Link Tue Nov 1, 2011
Who will finance you? What is the cash flow of the business? What is MOST important to you about the investment. Cash flow OR gamble on something in the future? I am still laughing at tne media who said "What bubble!"
0 votes Thank Flag Link Mon Oct 31, 2011
This is a question we get asked alot. Investors are flocking to South Florida for looking steals and deals. While there are a number of steals, they are few and far between, but there are plenty of deals.

You may want to reconsider the Condo idea, only because of financing. Condos are still challenging to obtain loans unless the Condo Association is Fannie Mae (Homepath) or HUD approved. It's much easier to obtain financing on a Single Family home or Deeded Townhome, and believe you will also have more opportunity for appreciation vs. condos.

There are some areas I would recommend for Investment. Wellington, Jupiter, Palm Beach Gardens, Boca Raton, and limited areas of West Palm Beach,Boynton,Delray.

You indicated a view of the water. If you could be a bit more specific, since we have some communities that overlook a lake(pond) or Intracoastal depending on budget.

For investment purposes, you also have to consider the expenses, including HOA Fees, Taxes, Insurance, and Management. You should expect to receive 7%+ Net after expenses to qualify the property. I don't purchase anyting personally that does not meet the criteria. It gets more difficult as you get into the higher class neighborhoods.

If you would like to discuss this in greater detail, please feel free to call me at your convenience.

Thank you,
Craig Fialowski GRI,CDPE
Realty Elite - The Palm Beaches
561-827-1790
Craig@CraigSellsPalmBeach.com
0 votes Thank Flag Link Thu Aug 25, 2011
You are going to need more then 20% to put down on an investment property in a condo. I would suggest you speak to a mortgage officer before you waste your time.
0 votes Thank Flag Link Sat Aug 20, 2011
All of South Florida's real estate market has been hit hard for the past 5+ years. Many feel that Miami overbuilt condos so now there are a lot for sale. There are communities that had Chines drywall issues so now it's harder to sell them because of the association to that. There are communities that are still building new homes so current homeowners are struggling to sell their homes because the builder is "giving away" upgrades. I know that you want to buy something near the water, but what are you willing to pay in condo dues? The closer you get to the water and the more amenities you have the more your monthly dues will be. I need to gather more information from you before I can give you an exact area. Please give me a call so that we can discuss this further - 561-445-8743. In the meantime, feel free to look at more properties on my website - http://www.BuySellBoca.com.

I look forward to hearing from you soon.

Sincerely,
Nicole Marks Mason, Realtor
Web Reference: http://www.BuySellBoca.com
0 votes Thank Flag Link Sat Aug 20, 2011
Florida Investment,

There are two aspects to consider when looking into the purchase of an investment property; the return on revenue you can reasonable expect based on the purchase price and the location and how it might be affected by future price appreciation. Living in Jupiter I can tell you the north Palm Beach County area is one of the best spots you can find for future appreciation as the quality of life we enjoy is tremendous. The best place I can point you is a brief blog I did about the Jupiter area;

http://tompriester.wordpress.com/2010/06/04/jupiter-rocks/

As a resident of Jupiter, I work throughout Palm Beach and Martin Counties, and a great place to start is by defining your goals and comparing the lifestyles and housing costs of areas that you are interested in. There are so many different options available to us that reside in the state and I have selected Jupiter because of the quality of life that we enjoy. From my viewpoint, there is no finer place to reside that the Jupiter area; from the best schools, to a fantastic economy fueled by many factors and of course the wonderful facilities of Max Planck and Scripps Institute, to incredible unspoiled beaches, unbelievable dining and shopping options, numerous boating and golf opportunities, uncrowded streets, low crime and just the overall kindness of our residents. Recently, we were out with a client form New York who commented on just how nice everyone is; and why not as we are truly lucky to live in Paradise. You will find towns like North Palm Beach, Palm Beach Gardens, Tequesta and Juno Beach to have the same fantastic lifestyle.

When looking at project returns you need to carefully evaluate the purchase price and ongoing expenses like association fees, property taxes, insurance, etc. You also need to thoroughly investigate the current rental climate in the area surrounding the property. What are similar properties renting for, how quickly are the renting, how many similar properties are out there for rent, etc.

You also need to carefully evaluate the condition of the property and determine what expenses may be incurred in getting the property into rental condition. Many of my clients prefer to put hard surface flooring throughout as it stands up to wear and tear better than soft goods. One thing many investors overlook is if you are in an association will they accepts pets. Many pet lovers have a difficult time finding home that will accept their pets and this can be a huge benefit to investors. If you find a pet friendly situation it will make it easier in most locations to find tenants willing to pay a little more.

Future appreciation is hard to put a precise number on but the better the location the higher that appreciation will probably be. You can expect a little lower up front returns (in my area from 6% to 8% cash on cash returns) compared with up to 15% in less desirable areas and product types (up to 5%+).

The best thing you can do is locate a qualified Realtor who can properly assist you in locating good opportunities and be ready to act quickly when the right opportunities present themselves. Throughout Palm Beach or Martin Counties I would be very happy to work with you towards meeting your goals. The current market is really a perfect storm and in my opinion Florida real estate in the right location is one of the absolute best investment opportunities we will see in our lifetimes.

Best of luck and if I can offer anything additional please let me know.


Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"


Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Sat Aug 20, 2011
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