- Research the property you’re interested in carefully, including: What are the comparable prices? Are there liens on the property? What kind of income will it generate? Are there existing tenants and tenant leases? Is it an “up and coming” neighborhood or on the decline? Always keep in mind that investing is a risk.
- Get your feet wet by starting small: Maybe a duplex or a small condominium, and if you’re not in Florida, maybe a home for you with a basement apartment. Set your budget.
- Plan your expenses: Besides the obvious taxes, utilities, upkeep, HOA fees and repairs, will you have a management company fee or will you handle the rentals yourself? A rental company can handle collecting rent, repairs and if needed, evictions. (The rental company fee may be worth the headaches and additional time it takes to have another “job”).
- Make your purchase a cash purchase: Chances are your financial planner will discourage you from getting a loan to make an investment purchase, however if you don’t have the cash, make sure you can cover the mortgage payments and expenses without the rental income.
Here on the Emerald Coast we have many long-term and short-term rental investment property opportunites. Are you ready to start or expand your real estate portfolio? Call me, 850.374.0454 or email to firstname.lastname@example.org