So much is dependent on what is available when you are in town. The market for investment properties is red hot and new listings draw multiple offers and are typically under contract within a few days. Last week offers made for two clients; one a condo in West Palm Beach and one a single family home in Palm Beach Gardens drew 16 and 12 offers respectively and each sold for at least 15% above list price.
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. In all cases location is the key to your best returns.
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. A complete understanding of your goals will allow your agent to identify the best opportunities and have you prepared to act quickly. If you would like to further discuss your particular situation I would be honored to speak with you so please feel free to contact me at your convenience.
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
Please contact me at firstname.lastname@example.org or 561-308-5269. I have worked with a couple investors from Canada in the past year.
I believe that I can do a better job of helping you. My inventory of listings contains what you are seeking at some very eye opening picing. I'd be happy to forwaqrd you informationa and meet with you once you arrive to fill in the blanks.
Jerry Rappaport - the Game Changer in Real Estate
Steven Miller Real Estate, Inc.
I work with many Canadian investors to buy foreclosure & short sale properties in Florida. I also developed many relationships with Canadian Brokers and assisted their clients purchase properties in the states. Through helping many clients I have an established track record with proven results for foreign investors. It would be my pleasure, to assist you in finding an ideal investment property during your visit. Please let me know what times are best for you and I will open my schedule and we can go view the properties of interest. Send me an email and I can start sending you information on the listings that best meet your investment objective.
David Harrelson, Broker
Palm Beach Realty Group, LLC
580 Village Boulevard, Suite 150
West Palm Beach, FL 33409
561.594.4000 ext. 101 Office
Jeffrey L. Tricoli
Keller Williams Realty Palm Beach Central
Realty Associates Fl.
Marc Gagne, Realtor
Keller Williams of the Palm Beaches