Thinking of real estate investment or adding some more to your portfolio? Southwest Florida is a growing market for real estate investments. The Fort Myers and Cape Coral area are among the fastest-growing metropolitan areas in the nation. Just check out these stats!
- The population has grown 22% from 2010-2018.
- The area has a lower unemployment rate than the national average.
- The area’s job market is projected to increase by 44.0% over the next ten years – that’s 6.5% higher than the national average!
- The sales tax rate for Fort Myers is 6.0%, or 1.3% less than the national average.
- The income tax rate is 0.0% compared to a national average of 4.6%.
You can see why people are moving to this area, and we haven’t even covered things to do or the beauty of Southwest Florida.
Benefits of Investing in Southwest Florida Property?
Real estate investment has a more favorable risk vs. reward compared to other types of investments, and renting isn’t the only option when you’re talking real estate investment. We’ve all seen the few popular TV shows like Flip or Flop and Property Brothers all about people’s journeys flipping houses. There is a real market for flipping homes in Southwest Florida. But it’s not all about a quick turn around either. Some invest in real estate, hoping the value of the property continues to increase over a period of five to 10 years, then they remarket the home. The most common is renting the property long term. Cash flow is king in real estate investment.
What to Look For in a South West Florida Investment Property
Location. The type of community the property is in sets the tone for the kind of tenant you can expect to rent from you. You want a property in a friendly community that’s inviting for families, retired couples, or business people. You know what these communities are like, think of what type of community you would live in.
Knowing surrounding areas can be crucial as well. You don’t want to purchase a property where there is going to be a large factory-built across the road in the future. The industrial property will decrease the value of your home for resale. People like scenic views, good community feel, and access to amenities.
Attraction Value. The property needs to be inviting as well. Attractive properties have good roads, well-lit streets, and well-kept landscaping. The house itself needs to be attractive as well, a good floor plan, a deck or patio, and a well-kept interior and exterior. Many things can attract or repel your ideal renter. If you have an “ugh” feeling about something, chances are your perfect renter will get the same feeling.
Type of Property. There are many options, including apartment complexes, duplexes, and single-family homes. Each of these has positives and negatives. Investing in an apartment complex means you have income from multiple tenants coming in, but the cost of maintenance may be substantially higher. With a duplex you get two tenants in one property, meaning you’re still getting income if one moves out – but you may have double appliances that may need to be fixed and other possible repairs. Single family homes are easy to find renters for if the property is good. There will be less less maintenance costs compared to apartment or duplex complex, but the downfall is less renter cash flow.
Time Investment. Do you have time to be a landlord, repairman, and groundskeeper? Do you want to collect a rent check or work for a rent check? Many property management companies will do your dirty work. They won’t do it for free, but what is our most valuable asset? I think the answer is time. You cannot buy more time, but you can pay someone to take care of complaints, yard work, or repairs, which equals more time for you.
You’re going to need someone who knows where to find these properties. Rebecca Silva has been involved in real estate in Southwest Florida for a decade. She not only works here but lives here as well. Rebecca Silva has a network of colleagues in the area that are involved in all aspects of the real estate industry. Rebecca Silva is passionate about helping you with your real estate needs.
For an indpeth free consult fill out the contact form below to reach Rebecca