Dos and Don’ts of SWFL Investment Properties
Purchasing an investment property is a popular option for Naples-area residents to generate some extra income. It seems like a slam-dunk, right? Just find yourself some good tenants and collect rent – easy-peasy.
Unfortunately, like most things, it’s not quite that simple – but with some planning and forethought, buying a rental property in SWFL could be the perfect option for you! We’ll help you learn what to do and what not to do when looking into purchasing an investment home.
Do: Get to Know the SWFL Real Estate Market
What are the market conditions in your area right now? You need to find out before you make your decision on whether or not to invest in a rental property. If the current demand for rental housing is low, it’s probably not a great idea to get in on that; on the other hand, if it’s high, you stand a much better chance of getting a good return on your investment. Talk to the Link Team to find out what the local real estate market looks like.
Don’t: Buy a Fixer-Upper
You might be thinking that you can find a run-down house for a low price and renovate it into a great rental home. This usually isn’t a great idea unless you’re great at doing home renovations yourself, since the cost of upgrading the house is likely to be more than you can easily recoup through rent payments. It’s best to find a house that needs only minor work, such as a new coat of paint or some updated kitchen cabinets.
Do: Decide What Type of Rental Arrangement You Want
Are you thinking of renting your property to long-term residents or to vacationers? There are pros and cons to both. Being a landlord to long-term renters is a lot of work, but thanks to lease agreements you’ll be able to count on steady income from this arrangement. On the other hand, renting out your house to short-term tenants such as vacationers or business travelers is less labor-intensive on a day-to-day basis, but you may go through dry spells where your house is sitting empty. Think about which option would work best for you.
Don’t: Count on an Immediate Profit
Like with any investment, a rental property won’t pay for itself right away. Startup costs are high, and it might take some time to find the right tenants. Investing in real estate isn’t a way to get rich quick; you’ll need to be in it for the long haul.
Get Advice From the Link Team About Investment Properties in SWFL
If you’re considering purchasing an investment property, talk to the Link Team! We’ll advise you on current market conditions and help you find the perfect house to invest in. To get the ball rolling, send us a message through our website or call (239) 357-5058.