Two easy tips that will save you time, money and a lot of headaches when you buy rental property at the beach. Now is a great time to invest in a rental condo or house at the beach: Prices seem to have bottomed out and we are now seeing significant appreciation in a lot of neighborhoods, financing seems to be easier and we are seeing banks are lending on condos again, and sellers are still willing to negotiate on price and terms. Having said that there are still a few things every buyer of investment property at the beach should be looking out for to save themselves time, money and headaches.
Make sure you know how much it’s going to cost you after you own it.
It’s certainly exciting to negotiate the purchase price and getting a deal on your dream property but things can turn quickly on you a few months down the road if you are not careful. Before you agree on purchase price ask the current owner for a list of their expenses (not including mortgage): HOA Dues, Assessments, Taxes, Insurance, Utilities and so on. They should be able to provide them for you. If not – slow down and talk to your realtor about what expenses you will have once you own the property. Once you have a firm understanding and you are comfortable with the number move forward and buy your dream property.
Have a very good idea of how much it’s going to bring in in rental income.
If you are buying an income producing property you should have a very good idea of how much income it has generated in the past and what you can expect moving forward. I would recommend you get a “Rental History” from the owner dating back as many years as possible – more the better. Then I would recommend you get a “Rental Projection” from one or two rental management companies. This way you will get a professional property manager’s insight into how much they think your new property will generate. They may even tell you if you need any significant upgrades to the property.
These may seem like two very obvious things but people get caught up in the excitement of buying their condo or house at the beach and forget to think about what happens after they own it. Don’t be one of them.
If you hire a good realtor with experience selling investment properties at the beach you will be fine – they will help you throughout the entire process: while you are looking, during the negotiation and long after you own it.
About The Author
My name is John Moran – I am the Team Leader for Keller Williams Realty’s At The Beach Team. I and all my team members are committed to doing the very best we can to get you the greatest return for your real estate investment and will strive to help you maximize your position whether you are a buyer or a seller.
I hope this information is helpful for you and if there is anything I or any of our team members can do to help you in the future please do not hesitate to call or text me at 850-217-7618, or email me at JohnMoran@AtTheBeachTeam.com
Note: Keller Williams Realty’s At The Beach Team sells more condos from Panama City to Pensacola than any other Realtor or team of Realtors – by double! The At The Beach Team also ranks in the Top Ten for combined sales (Houses and Condos).
More Real Estate Tips Like These
If you would like to see other tips about buying or selling real estate simply send me an email at JohnMoran@AtTheBeachTeam.com and I will be happy to email them to you. If you would like to receive future tips – we typically send them out once a month – again simply send me an email and I will make sure you get them.
– John Moran