A recent article in Money Magazine profiled the residential rental market. It has been heating up for a number of years. In Florida where so many have been hit hard by foreclosure, certain areas have seen a massive increase in families looking for a home to rent in a good school district and in an area close to highway access. In Boca Raton specifically, this trend is evident because many parents will do whatever it takes to have their children in any one of the exceptionally rated Boca schools.
A 3 bed / 2 bath rental priced under $2,000 per month is usually under contract to lease within 10 - 15 days. Investors are taking careful note of this trend and are paying asking price when homes that fit the ideal rental model come up for sale. Foreclosed properties in this market segment also sell at list or higher. In Boca, monthly maintenance fees and insurance can be high so investors target the few communities that have either no fees or fees under $200 per month. Most of these communities are located west in the county district or east in the city boundaries. Central Boca tends not to have a huge number of the ideal rental properties.
If you are considering the Landlord role, note that ready cash will be a requirement. You will be competing for homes with other all cash buyers who can close quickly and will buy homes in the right communities regardless of the condition of the homes. I have seen many homes snapped up in days that required new roofs and major renovation.
Buying at the right price in Boca Raton, you can realize ROI's of 6 - 10%.
Most new investors must buy with a landlord's perspective though. Don't look at the intrinsics of the home itself, you are not going to be living in it. Consider the area and its amenities, the potential monthly rent and the demand for rentals in the community.
My final comment; don't think of becoming a landlord in Boca Raton if you think you can buy homes at a huge discount to the list price, it's not going to happen for high demand homes.. A good Realtor should be able to show you statistics of recent sales and sold vs list prices. Trust the professional you choose to work with and you should be successful in acquiring investment properties.
As always, I welcome your calls and emails.
A 3 bed / 2 bath rental priced under $2,000 per month is usually under contract to lease within 10 - 15 days. Investors are taking careful note of this trend and are paying asking price when homes that fit the ideal rental model come up for sale. Foreclosed properties in this market segment also sell at list or higher. In Boca, monthly maintenance fees and insurance can be high so investors target the few communities that have either no fees or fees under $200 per month. Most of these communities are located west in the county district or east in the city boundaries. Central Boca tends not to have a huge number of the ideal rental properties.
If you are considering the Landlord role, note that ready cash will be a requirement. You will be competing for homes with other all cash buyers who can close quickly and will buy homes in the right communities regardless of the condition of the homes. I have seen many homes snapped up in days that required new roofs and major renovation.
Buying at the right price in Boca Raton, you can realize ROI's of 6 - 10%.
Most new investors must buy with a landlord's perspective though. Don't look at the intrinsics of the home itself, you are not going to be living in it. Consider the area and its amenities, the potential monthly rent and the demand for rentals in the community.
My final comment; don't think of becoming a landlord in Boca Raton if you think you can buy homes at a huge discount to the list price, it's not going to happen for high demand homes.. A good Realtor should be able to show you statistics of recent sales and sold vs list prices. Trust the professional you choose to work with and you should be successful in acquiring investment properties.
As always, I welcome your calls and emails.
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