It’s no surprise that you might be looking for investment properties in SW FL. It’s a sunny place, with plenty of beach property, and if you’re not planning to take up permanent residence in the state, you’ll find comfort in the many residents who also spend time in Florida to escape the colder months of the year. Florida is home to a booming retired community, and the sunny state always welcomes visitors are just looking for a warm and tropical spot to spend their vacation.
No matter what your reason for looking into investment property in southwest Florida is, be it to own property, or to rent it out, there are few things to keep in mind.
Know Property Types
You have more choices at your fingertips buying real estate in SW FL than simply renting out housing complexes for multiple families year-round. Your investment options also extend to traditional rental income properties, a second home, or a vacation rental.
Properties sell for a wide range of prices, so regardless of what your budget is, you’ll likely be able to find something to suit your needs. It goes without saying that the closer to the beach you’re looking to invest, the more costly it will be.
Cape Coral, specifically, has some great options along the beaches and canals, and the Fort Myers area also has beautiful vacation homes. If you’re looking to spend between 300k and 400k, then investments in this area might be just for you. If your budget is a bit lower, for example, the 100k to 200k range, then you can find more affordable properties by going inland a little – perfect for renting out to working-class families. Keep in mind, however, that these investments might require a bit more potential renovation cost. If you are looking for houses on sale in Cape Coral, be sure to search our database.
If you’re looking to use the property yourself, locations in SW FL can make for great vacation homes – think single-family homes, townhouses, or condos. By avoiding renting, you’re able to build equity and start paying down the principal now, so that you can end up using the home as your permanent residence once you retire. To side-step renter concerns like lawn care, property owners typically hire a property management company during the time that the houses are rented out.
If you don’t plan to live in the property at any point, traditional rental properties might be just up your alley, such as all of the ”plexes’: duplexes, triplexes, and fourplexes. But, you’re not only limited to such properties. If you want to scoop up a condo as a family home to rent, then those are an option as well.
Know the Local Prices
National prices may go up and down as time goes on. However, that’s not always the case. When you’re looking into how much investment properties in are Southwest FL, know that the prices can vary based on location. Just because the national rates in FL are down 10%, that doesn’t mean that you’ll be able to pick up a lovely beachfront property on the cheap. But prices do change, so keep your eye on these properties, just in case.
Prices Follow Inflation
Typically, property prices tend to follow inflation by about +/- 1-2%. So if the latest inflation figures are showing 4%, expect property prices will rise by 2-6%. If you look at property prices over the course of many years, it can vary wildly. These stats give you the general direction of prices and the areas of strength (or weakness).
Where to Look
If you’re looking at properties themselves before putting your money towards an investment property, it’s good to know where to find all available listings. Browsing available listings is always an excellent place to start on how to buy investment properties in SW FL. In these technology-rich times, it’s great to be able to get a virtual look at prospective properties before even considering stepping foot on them. There are plenty of sites that offer detailed pictures and other information about the property. They may also give realtor information, as working with a trusted realtor from the area can be beneficial to ensure that you’re looking at the right places and considering all factors.
Known websites, like Trulia and Zillow, are excellent places to find properties for rent or sale across the country. But, since we’re looking specifically at Southwest Florida, a better idea might be to visit the websites of local real estate agencies. These sites list the properties in a specific niche or area. Also, consider contacting the property management companies who specialize in managing the particular properties of the locations you’re looking to invest in – such as Cape Coral or Fort Myers. They’ll know these areas better than virtually anyone else. If there are any potential pitfalls, they’ll be the first to know and a massive help in pointing out any details of the market.
Find a Florida Realtor
You’ll have a much easier time finding the best properties worth investing in if you take the time to find a top-notch Florida realtor to help you along in the process. The right realtor will make the process smooth and comfortable, and in Florida, real estate sale commissions are paid directly out of the seller’s proceeds. This means, as a buyer in Florida, it’ll cost you absolutely nothing to enlist the help of a realtor. Plenty realtors even specialize as buyer’s agents. Florida realtors are there individually to help you find the perfect property for whatever your budget might be.
There’s a lot to know and to look for when looking to invest in property in Southwest Florida, but with enough due diligence, you can indeed have a successful experience. Investing in a property in Southwest Florida should be a seamless process, and we hope that you walk away from the deal with a big smile on your face. For more information on purchasing an investment property you may contact me directly here for a free consultation.