#6 Aspects to Consider When Purchasing Investment Property in the Florida Keys
- Location! It’s no secret to YOU how magnificent the Florida Keys are. And lucky for an investment property owner here, it isn’t a secret for the rest of the world either! The Florida Keys, as a whole, are a Top Tourist Destination resulting in vacation and short term rental price increases. Additionally, monthly and longer term rentals are also increasing in year round demand (not just the typical “high season” months of Jan-May). Limited properties in general, drive up appreciation of rentals and overall home values year after year.
- Financing! If using financing to purchase, keep in mind you will have to bring more money to the table of an investment property as opposed to one that is a primary residence. Talk to a professional lender or mortgage loan provider for more information, but experts agree at least 20% down is required and be prepared for higher interest rates.
- Fees! Consider all fees ranging from property taxes, insurances, basic maintenance, HOAs, property management company’s costs (like Star Properties Destinations) and a security account in case you go longer than expected without renting. On average, advisors say to expect to spend up to 1% of the property value annually for maintenance expenses.
- Property Management! I would recommend we talk to our Property Management Company (Star Properties Destinations) directly to learn more about specific fees, return on investments, and recommendations on what to look for when purchasing investment properties. Contact me and we can set up a conference call with our Property Manager to learn more.
- Florida Landlord/Tenant Act! All Property Owners should become familiar with and adhere to the Florida Landlord/Tenant Act
- Passive Income and Appreciation! After you’ve made the investment and have the property management company overseeing the day to day, you earn passive income. Many Florida Keys investors love the fact that they can come down and use their property according to their schedules. Obviously, the more time you rent your property out, the more potential income you can make. In general the real estate market is more stable than stocks and other investments. Whether you’re at work hundreds of miles away, or are retired and visiting family and friends up North, your money is growing and working for you within your investment property.
So, what do you think? Is the time right for you to purchase that Investment Property in a Dream-Worthy Locale? Contact me at any time; I'm here to help!
-Erin
Posted by Erin Kiel on
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