According to the news, rents are rising faster than last year, which means, the opportunity for residential real estate investors is getting even better than it already was as a result of once-in-a-generation prices and low interest rates.
Buying a residential home is a long term investment. Rental income is a steady return on your investment through the years, leaving you with an appealing asset when prices improve. And they will. The best profits in real estate accrue to long term investors who take a long term view.
According to RIS Media, rents are growing at a 5.17 percent annualized rate compared to a 4.72 percent at this time last year Assuming effective rent grows at the same rate in the next four months as it did in 2010, the full-year total would fall just below the historic highs of 2000 (6.18 percent) and 2005 (5.81 percent).
Before your start Cashing in on Investment Rental property in Central Florida -
Know your options. Since not all investment properties are the same, it's important to determine what type of property fits your strategy. Do you want to become a landlord, or would you rather restore and resell properties? Are you interested in apartment buildings and other commercial real estate, or in buying land that can be developed? First-time real-estate investors may want to start with residential housing, since commercial real estate and land development still face challenging market conditions.
Find an experienced Real Estate Professional. First-time investors should find a real-estate agent experienced in investment property deals who can help you locate promising properties. A second option is to partner with a more experienced real-estate investor and close a deal together. In the current economy, an experienced real-estate investor may be willing to work with you in exchange for the capital you can provide, giving you the opportunity to glean investment knowledge and experience firsthand.
Look for the right location. If you buy a property with hopes of renting it out, location is key. Homes in high-rent or highly populated areas are ideal; stay away from rural areas where there are fewer people and a small pool of potential renters. Also, look for homes with multiple bedrooms and bathrooms in neighborhoods that have a low crime rate. Renters are attracted to safe neighborhoods, and if they have kids, they will want a good school district. Also think about potential selling points for your property. If it's near public transportation, shopping malls or other amenities, it will attract renters, as well as potential buyers if you decide to sell later. The more you have to offer, the more likely you are to please potential renters.
Get your finances in order. Speak to potential lenders or even a financial planner about whether you have enough assets to handle the ups and downs that could come with investing. Even if you plan to rent out the property, count on paying the mortgage whenever there's a vacancy. If you can have about six months of mortgage payments saved up, it's there if you need it, and you can use that money for repairs. Even if you're planning to fix up a home and sell it, you may end up holding onto it for several months in the current market.
Build a network of Professional service providers. Don't wait until a rental property needs repairs to find someone to handle them. Line up maintenance individuals who can take care of the different challenges that occur so you can simply call the person when a particular issue comes up. You may also want to have relationships with are an attorney to consult with on tenant issues, a property management firm to handle the day-to-day rental affairs and an accountant to help you understand the tax ramifications of investing. The more support you have, the better you will be able to handle the problems that come your way.
When you do find your ideal rental property, keep your expectations realistic and make sure that your own finances are in a healthy enough state that you can wait for the property to start producing cash flow rather than needing it desperately.
When you are ready to start looking, Call or email me to discuss what options work best for you. I’ve been a real estate expert in the Four Corners Area (Davenport, Clermont, Kissimmee, and Orlando) for over seven years, and I've had the opportunity to help many investors and sellers with their Real Estate Needs. I look forward to working with you too.