Buying Destin, FL Condos Mainly for Rental Income
There are many factors to consider when contemplating purchasing a Rental Investment Property.
In this market you can’t always buy a condo for less than its market value. If you do, you can count on out of pocket costs to update the unit to current standards.
You have to plan ahead. Which works best for your situation? Is it better to pay right at market value or a little more for an updated unit with no out of pocket cost? Turn the key and start renting from the get-go. Do you have the cash and do you have enough reserves left should you need them. If not, financing the deal may be your better option. I have some great lenders here for condo-tels.
You need to make sure your cost to own pays for the mortgage, the HOA, Taxes, Electricity, Content Insurance and whatever else the HOA does not cover. Watch out for high HOA fees that cover minimal amenities. Watch out for low density buildings that are older that may look like they might get an assessment down the road….that can be costly. Look for recent improvements that are paid for. Watch out for any assessments not paid by seller at the time of the sale. Make sure your beach front property has wind rated doors and windows.
You also have to consider the costs to maintain the unit. Consider equity growth as well and see if prices have adjusted up or down in the last couple of years. Make sure the property is well-maintained and managed. What common areas may need improvements soon? Look at the budget to see if the funds are in reserves to take care of these issues or if you might face an assessment.
First time buyers might want to consider speaking with an experienced investor who owns in the building. For certain, you MUST get factual information regarding the rental income history. I can’t stress this enough. Don’t go on someone’s word. You always want proof!
It is worth it to really do your homework and take the time to know what you are getting yourself into.
If you would like more information give me a call at 850-428-4707. I am happy to give you the edification you will need to make such a purchase. There are many wonderful properties here in Destin and Miramar Beach. I can help you find just the right investment. I want my clients to be successful. I do most of the homework for you but I do ask that you do your due diligence once I have provided that information. I want you to have a comfort zone before making such a big decision. Most of my business is based on referrals because I sell success!