Florida has become one of the hottest real estate markets in the US with A number of Florida’s cities, including Orlando, Tampa, and Jacksonville, being named among the top investment locations in the country.
But Florida isn’t only a market for renters. Florida’s economy, which includes no state tax, a rising job market, and a low cost of living, attracts a variety of people looking to settle down.
No matter if you’re a seasoned investor or just starting out, it always helps to work with property experts to maximize your earnings. But you don’t need to spend many hours a day in research the particulars of a market to see growth in your investments. Understanding and applying the fundamentals will take you a long way.
So, we at Keyrenter South Florida have put together this article to give you an overview of the fundamentals when purchasing an investment property in Florida.
What Is the Florida Real Estate Market Like?
The Florida real estate market is busy and competitive. But, according to many reliable resources, with the state has a solid job market and lower unemployment than the national average. Florida’s economy, and therefore its real estate market, will continue to grow.
Florida’s population has increased dramatically in the last decade, meaning there is always a demand for homes. So, it should then come as no surprise that house prices in Florida are rising faster than in almost all other states, meaning there are many great areas in Florida you could invest in.
What this means for you, as an investor, is that cheap deals may be hard to find but highly lucrative deals aren’t.
Top Tips When Buying Investment Property in Florida
Evaluate the Location
The local area of a property is one of its most important features. For example, many of your prospective tenants may have kids and so will look to rent a home close to a school. This means you need to consider the demographic you are looking to rent to before purchasing the property.
Your prospects will also want choice and quick access to their everyday needs. So, having a property close to a bank, grocery shop, transport stop, or other essential facilities boosts your chances of keeping quality renters.
Understand Your Finances
Being in your best financial position is essential when buying an investment property. This includes reducing or completely removing any debt you might have. Especially if you are planning to use debt to finance the investment property.
Additionally, it is important to “shop around” as much as you can when speaking with banks and realtors to discover the best financial arrangement for your investment. In particular, you need to consider things like commissions and interest rates, as these will generally vary between financial and real estate professionals. In particular, it’s important to shop for a mortgage rate, as these can wildly vary depending on your provider.
Buy A Quality Property
Although purchasing, fixing, and then swiftly selling a house may sound enticing, flipping a property for a quick profit is a massive challenge. Professionals in this field either undertake the modifications themselves or have contractors lined up who offer high-quality work at reasonable pricing. Meaning experience is key.
So, if you’re a new investor, it’s best to buy a property that is already rent-ready. This type of purchase means you won’t be waiting too long to start seeing a return on your investment.
Partner With a Property Management Company
Being a landlord is a full-time job. Even if you only manage a single unit, it will still take a significant portion of your time and resources to keep it repaired, maintained, and filled with quality renters. For this reason, many investors choose to hire a property management company to handle these responsibilities.
The Keyrenter South Florida team can provide you with a complete property management service. Landlords and investors alike can relax knowing that their property is cared for and that any problems are dealt with swiftly. Contact us today for more information!
Educate Yourself on the Risks
Even though real estate is a tried and tested investment that can outlast the majority of economic woes, there are still risks. So, it’s important, as a real estate investor, to educate yourself on these risks and how best to mitigate them.
These risks can range from anything including problematic tenants, legal issues, evictions, real estate law, and even noise complaints. So, before investing, it’s a good idea to seek advice from those who are more experienced or contact professionals working in the field.
With so many deals available, buying real estate in Florida might be a great investment. But there are still many different concepts you need to consider before deciding to invest. Such as: is the property in the right location? Can you finance the purchase? Do you have the right knowledge? And do you have the right partner?
To answer any of these questions you can always reach out to the experts at Keyrenter South Florida. We take care of all the hassles and guide you through the process of renting your residence or investment property, so you don’t have to worry.
Contact us today to learn more about how we can help you invest in South Florida!