What investment vehicle could beat the income generating of rental properties? Don’t forget the appreciation of the asset along the way. We will examine rental properties investing here in Miami as an investment tool for 2017.
Skeptics will point out the cash flow issue of expensive repairs as a main reason to stay away of rental properties. On TV you might see investors buy real estate and run into costly repairs and unexpected delays but always seem to make a big profit at the end. Remember it’s TV and these so called investors live for the drama to entice the viewers. Let’s put down the remote and lets look at the real world and discuss smart investing. The keys to success is Location, strong property management, and planning.
Search for a strong growth in all sectors such as jobs, new constructions, real estate values, population, etc. In Florida, central Florida have been attracting investors of all financial sizes. Tampa has been named the hottest market this year and there are no signs of slowing down. Investing in the South Florida (Miami-Dade, Broward, Palm Beach) region has and will always be a great market for investors but your pockets need to be deep. Real estate values have reach pre-bubble prices and the rental market is out of control. With lenders tightening on lending regulation banks are making it difficult for millennials to jump on the homeownership bandwagon. Interest rate increases are also holding buyers back forcing individuals to rent.
Strong Property Management:
Search for a small management company that specialize in residential property management. There are many property management companies in Miami that manage all types of properties and those are the ones you should stay away from. You need a team that can offer you customized management plan that fits your needs and the property.
What type of property will you buy? What neighborhoods will you invest in? Should I set aside an expense account to help with unexpected repairs? When should I sell? Before you think about investing you must create a plan with your property management company and follow it through. The property management company should be ale to answer all these questions as they are the local experts.
We at Miami Property Management LLC can answer all your questions concerning Miami Rental Properties. Call us today 786 302-9454 and speak with one of our managers.