One hallmark of U.S. real estate is the fact that personal property rights are held sacred, and those rights are extended equally to foreign nationals whether you own an owner-occupy or investment property.
If you are ready and want to get into the world of owning rental properties, we invite you to consider a few factors.
There are a lot of benefits of owning rental real estate in Orlando, but there are challenges too, so, let me explaim.
You should know each piece of property is different, and values can vary greatly based on neighborhoods or comunities. This applies even more when looking at investment property; therefore, you should closely review rents at comparable properties in the area. If you are looking at at a 1,500-square-foot townhome, you need to know what do they rent for, and what do similar townhouses sell for.
We are seeing renovated properties getting what may be a premium in rent. Are you willing and able to renovate the property to get that same rent? If condition is dated and you still decide to keep it like that to rent, it will for sure rent, but your cash flow will be less.
Rent needs to cover the loan’s principal, interest, insurance, real-estate taxes, and if it’s a condominium, the monthly condo/association fee or Homeowners association fee.
If you are looking at condominiums, you need to know what limits the association may have on rental properties, some communities want to keep a balance between how many units are rentals and how many are owner-occupied. In many cases they won’t even allow you to rent until you as owner have occupied the property for the first year, or even worst left empty, as it cannot be rented for the first 12 months.
If you are looking to finance the purchase, you must have at least 20 to 30% for downpayment. Investment-property mortgage loans can be costlier overall because there are more risks involved for banks. Plus there are the usual fees that go with any real-estate transaction. We can help you secure financing approval to show you as strong buyer before we locate the ideal property and start presenting offers.
We help new landlord as they often have a hard time accounting for what all the costs will look like, which is why taking the time to create a line-item budget for any property is important, as is having access to funds to pay for unexpected costs. Sometimes property may need improvements or repairs before tenants move in.
Please know, It’s a time commitment. Owners need to understand that it takes time to attend to the physical needs of the property and time to recouperate the investment. Ideally, you should view the investment with a long-term focus.
Real estate investing is not for everyone, especially not for those who avoid stressful situations.
It requires capital, a time commitment and flexibility to adapt to the market.
If you think of Real Estate investment being a passive investment, let me tell you, it’s not. Landlords need to attend to property maintenance requests and address issues tenants may have that can’t be put off. When you’re a landlord, that’s definitely not passive, unless you hire us as your management company to take care of the property and tenants.
While some housing markets become “hot,” they don’t stay that way as their values tend to run in cycles. Whenever you invest in real estate, you build wealth through rents and build value through the property appreciating. Let’s us the Viva Orlando Realty team help you achieve this.
Have any questions about the Central Florida Real Estate Investment?
Let us know, drop us a line at milena@vivaorlando.com