Because there is so much for rent out there, many have struggled and very often had to drop their prices. In 2004-2006 investors paid much more for their invesment properties and in return did get more in rent. Its all relative.Now, you will pay much less, get deals, even pay less then market value and in return most often get less rent per month.The big plus is that investors can use less of their own money for downpayments for example.They don't need as much return to stay afloat..
Calculate your CAP.. You can do very well as southwest Florida is growing strongly. You may be able to rent the short sale to the ex owners, but unless you offer them an attractive package, they will go elsewhere. You make a good point that many want to stay in the same home but its not as clear cut as that. You have to be very competitive.Again its about the CAP.
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We're not sure it a "win, win" situation because the owner still loses their investment in home ownership. But antthing is possible; circumstances would have to be ideal for both parties.
Judging from the condition many of these homes are being left in, you may find yourself embracing a less than perfect renter.
You are correct in your assumption about the increase in rental interests. At this point, many potential buyers are looking for renting with the option to buy opportunities which is something we would only consider with a substantial deposit put in place buy the purchaser.
Purchasing in the right location and renting is a good plan.....just uncertain of renting it to the current owner, a little too idealistic? If this is your chosen path, be certain you are investing in a location with a strong rental market. Naples, Venice, Sarasota, etc.
If you are interested in Sarasota County foreclosure information, we would be happy to provide you with this information.
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