Investors - Follow the rules

What better time to become an investor in Florida real estate. Prices are really low and money is cheap, there is no doubt that almost all units can guarantee a great return for investorts from day 1.

But, like with anything else, there are valuable rules to keep in mind when purchasing property for investment. In Florida, this is particularly important because of the ubiquity of homeowner and condo owner associations. Many of these associations have strict rules about renting. Some don't allow rentals at all while others only allow rentals after either 1 or 2 years of ownership. So, even if the purchase price is a steal, if you cannot rent for a year, you are going to have to carry the holding costs. It's interesting to note that associations that restrict rentals are not doing the property owners in their resprective community any favors as prices in these communities tend to be 10 - 30% lower than communities that have a more liberal rental policy.

Over 55 or active adult communities are also not my best choice for investors. These communities usually have more restrictions than others and tend only to be viable for 4 - 6 months of seasonal rentals.

Real estate entrepreneur Ryan Moeller recently writing for the website, http://www.biggerpockets.com/ offered these four tips for anyone considering a consumer real estate investment:

Best value is any family sized unit in a great school district, single family home beats townhouse or condo but they are the hardest to find and competition among investors is always more intense.


1. Don’t count on appreciation. Appreciation is a bonus.

2. Watch the loan-to-value ratio. Ideally, the total cost of the purchase, fees and repairs should be no more than 70 percent of the appraised value of the property in good condition.

3. Maximize annual return. Aim for properties that can be rented for at least 1.5 percent to 3 percent of the purchase price. For example, plan to pay no more than $50,000 for a property that can be rented for $750 per month.

4. Have an exit strategy. Seek properties that are attractive enough to have value no matter what happens to the market – as rentals, for sale to other investors, or for sale to somebody who plans to live there via conventional financing or lease purchase.

If you or anyone you know is interested in buying investment property call me, I can show you some great opportunities. Plus, you can sign up for my Twitter account feeds and check daily for investor specials.

Tali Wolder
561-866-9372
Tali@floridianinternational.com
http://www.talisellsflorida.com/