When you’re wondering where to buy investment property in southwest Florida, you have a number of options. The property you select ultimately depends on what you’re looking for and what your investment goals are. There are three things you need to know when you’re looking for an investment property.
Single Family and Multi-Family Homes
Single family homes are great when you want to gain some long term appreciation. There’s a good possibility that you’ll earn some cash flow with your monthly rental income, but the major focus is allowing your investment to grow in value. These types of properties increase in value when there are enough people wanting to live there. Those people might be renters or owners, but you have to have a marketable property in order to make any money from it.
When you’re less concerned with long term appreciation and more interested in regular cash flow, you might be better off investing in a multi-family property. This can be a duplex or a triplex and you’ll have several tenants living in multiple units. These types of homes bring in more rental income and the value of the property is specific to the type of rental income you can earn.
Understanding the Market
Choosing a property will also depend on how much money you have to invest. There is a whole range of price points and if you have a surplus to invest, you can buy one high end property or purchase several properties on the lower or middle end of the market. The market will dictate how much you can get for your money. In southwest Florida, the market has been adjusting after the plunge in property values during 2007 and 2008.
Choosing a Home
The last thing you need to consider is property condition and amenities. It’s important to consider a home’s age when you’re buying because that will impact your future maintenance costs. Look for whether the house has a wood frame and consider what will be involved if it has a septic system. Talk to a property manager before you commit to buying an investment property. This will provide you with the resources you need in order to estimate how much rental income you can expect and what kind of repairs and maintenance you’ll need to include in your budget. A sound investment strategy will include all these things and a property manager will prepare you to choose an investment property that makes you money.
Contact Realty Services Property Management if you have any questions about investment properties in southwest Florida.