What is the purpose of the rental property? Are you looking at a seasonal rental near the beach? Are you looking as an annual rental in a local neighborhood? What is your price range? Are you looking at a condo, single family home, mobile home? There are many factors that need to be taken into consideration. I can tell you that North Port, FL located in southern Sarasota County is a great area for investing right now. There are more renters than there are renters. So rental companies are looking for additional homes to rent.
Here are some things to keep in mind if you are planning to purchase an investment property. First of all decide how long you plan to own the property before you buy it. The longer you own the home, the more money you will need to put into it for maintenance, repairs, and improvements. Then decide your purpose for investing. Is it for rental income? Are you looking for a quick flip? Are you looking to build up appreciation and resell?
Don't count on appreciation. With the market the way it is right now, appreciation is not a guarantee. When looking at homes, you want to purchase a home that would have an attractive resale value no matter what the market is like. Obviously you would like to make a profit if you did resell.
If you decide to rent the property, you want to rent it for at least 1.5 to 3 percent of the purchase price. It is necessary to make sure your rental income will cover your out of pocket expenses such as the mortgage payment, taxes, insurance, maintenance, repairs and vacancy rate. Right now, demand is higher than supply. Check with local real estate agents or call rental ads to see what the going rental rate is within the areas you are looking to purchase a property.
Try an investment calculator such as the one at goodmortage.com. Go to their web site: http://www.goodmortgage.com/Calculators/Investment_Property.html.
This will give you a good idea of the financial situation if you decide to rent an investment property.
There are tax benefits in any real estate investment whether it be rental homes, apartments, vacant land, commercial buildings, industrial, shopping centers, or warehouses. Check with your local tax advisor before entering into a purchase agreement for any investment property to make sure you qualify and follow the strict requirements.
Tammy Hayes, Realtor, Green Lion Realty, Port Charlotte, FL, email@example.com