Rental property investing in South Florida is currently a challenge to find cash positive rental properties. Due diligence is a must, and patience is essential. There are still foreclosures and auctions, and always pocket listings and occupied rentals that landlord will unload, tenants and equity included. But finding them can be time consuming and feel like a rocky road. Investors should hire an experienced real estate professional to work with for the long game, in order to seek out the best properties and help with the many other aspects of making rental properties perform positively.
For buyers, it IS a buyer's market! There are a solid number of properties on the market available to buy, and buyers can often negotiate the prices a bit. However, if buyers are using FHA/VA financing, they are finding it more difficult to find sellers willing to accept this type of financing as it can come with some additional loopholes that conventional mortgages don't have.
Sellers are currently able to sell at prices that make them happy but need to be careful as there are still some pitfalls encountered in the process. Low appraisals are a problem that are sometimes blowing up sales contracts, forcing the buyers to walk away and sellers to start the process all over again. Also, we've seen some ruthless inspection reports with unrealistic repair estimates attached. Buyers sometimes freak out when this happens, and sellers become defensive and don't want to negotiate. The sales contract is then jeopardized unless a very neutral experienced person is there to add calm and logical reasoning and assist both sides in negotiating terms they are both happy with.
Tenants are having the most difficulty in the 2018 South Florida market. Finding affordable rentals in most areas within South Florida is very difficult. Oftentimes there are multiple offers on the same rental property, so anyone with less than stellar credit scores or less than 3:1 income/rent ratio need a longer timeframe to secure a new rental property as well as lots of patience. Because South Florida is very transient (lots of people move in and out, more in... all the time) rental rates remain strong and continue to rise.
For buyers and renters, the services of a licensed experienced Real Estate Agent are FREE. By having professional help navigating through the process of buying or renting, you'll get to the best properties first, and present more solid and attractive WIN-ABLE offers! And they will walk you through each step to ensure you avoid the normal pitfalls. It is the Seller and the Landlord that pays for their services once the transaction is complete.
When done right, real estate and rental property investing has the potential to change your future. Whether you are a risk-taker, or just want to secure a home to call your own... information is your key to success. A great website to monitor mortgage rates and trends, and watch for lowest rates is Mortgage News Daily.
One of the biggest factors that directly affects real estate (both selling/buying, and renting) is interest rates.
Whether you are an owner now, or looking to invest in the future, pay attention to the economy (current and future) and interest rates.
In 2018, the Federal Reserve is expected to continue slowly increasing interest rates. As long as it is done in very small increments, this should be positive for the economy. However, want to watch interest rates closely. They are still at historic lows and we don't expect them to DECREASE! If you want to buy, consider buying NOW while interest rates are still very low. Don't make the mistake of believing these low rates will last forever.
Imagine if you purchased a house, condo, townhouse, or warehouse fifteen years ago. You'd probably be more than halfway through paying it off and owning it free and clear! Unless you refinanced and took out some equity (borrowed some of the value as it grew) to invest in another property [in which case you've employed a great strategy and now own more than one property!]. If you were patient and rode the waves... you'd now probably have a great amount of equity built up, and it would continue to grow.
Sure, you had to live through some stressful times like the market crash of 2008, watching your property value plummet. Scary times for many! But guess what? In 2017, we're just about back to pre-crash levels (in most places).
With interest rates so low... you could have your real estate and rental property investing projects paid off completely in 15 short years! Imagine! Retire, travel, move somewhere amazing. You'll have options! Keep the property and owe very little or nothing, rent it out for extra income, or sell it and make a bunch of money. You'd have so many options, because you invested in real estate and patiently rode the waves.
Thinking about buying a property, investing in real estate to make rental income, or want to learn how to maximize what you already own? This site is filled with all kinds of real estate related topics, information and experiences that can help... everything from curb appeal and home staging to help sell or rent your property quicker and for top dollar.
Ever had bad tenants or want to avoid them? Read about bad tenant experiences. Learn ways to avoid them in your rental property, or best practices on handling them if you're stuck.
Whether you're a buyer who wants to invest in a property while interest rates are still very low, an owner thinking of selling, a landlord who needs some help, or a tenant looking to move... make sure you seek out good, solid expertise. It will save you from many headaches, sleepless nights, and most likely save you lots of money.
Either they jumped into the frenzy without all the information they needed, or they listened to some bad advice. Real estate is a gamble. And it needs to be handled carefully and strategically.
Failing to do the right research when rental property investing, not preparing properly, heading into or handling an investment without a careful plan and lots of knowledge... puts you at risk. Run into problems, and you could be trying to fix your credit score for years to come.
Your access to loans for cars, credit cards, education, or the ability to purchase another property could be very, very limited.
As with all things in life, in real estate there are always ups and downs. But by arming yourself with plenty of knowledge, and playing a strategic long game... you CAN win and come out way ahead.
If you are new to rental property investing, need to become a landlord because you aren't able to sell right now, or you tried flipping and got stuck with a property you aren't able to sell... it's crucial that you take the time to learn the ins and outs of landlording, all the potential pitfalls, and equip yourself with the knowledge (and professional help) to set up and run everything legally and SMARTLY!
For instance, how much will you charge for security deposits? Will that amount cover potential damage or eviction costs? And what about maintenance: will your tenants be responsible for the yard or paying all utilities, and how will you enforce it without costing yourself extra money? Who will prepare your lease, and will that lease be tailored to your property and needs? What about bookkeeping of all the expenses and income, and 1099 tax prep needed? While it's all definitely doable by anyone... it takes a lot of research and education to make sure you set everything up for success. It's VERY easy to lose money in the real estate/rentals niche. And what if you DO have losses? Are you documenting them to be able to take the right losses on your tax returns? Real estate losses can, in some circumstances, SAVE you money!
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