Florida Real Estate Blog

We are hearing from more and more seniors and their care givers the request to purchase rental real estate. When your $100,000 certificate of deposit is earning less than 1 % a year. Rental Real Estate makes sense.

Just make sure you understand the market and what rent you can command. There are tools out there that we Realtors use to help investor class clients evaluate each property.

You need to know what you’re carrying costs are. Those are the annual fees you will be paying if the unit is rented or not. Such as Taxes, Insurance, Association Dues including any assessments, fees to have a property management company handle the property. Make sure you have a number for refurbishing the unit at the end of a lease.

Then calculate your annual rent, you should factor in at least ½ month a year for times when the unit is vacant. Subtract the carrying costs from the annual rent then divide the net income by the cost of the property to find your Rate of Return anything over 4% in today’s market is outstanding. Since you also have the opportunity to see appreciation over time on your investment.

Last 30 days 12/17 to 1/16/12.

520 homes went under contract to sell in Seminole county. They broke down as follows 153 Traditional sales, 99 Bank owned and 268 Short Sales. It looks like the buyers are still out there. 2005 activity was 527 homes sold during the same period.

When Realtors take a listing they talk about what must be left behind on the day of closing and this device seems to be the most forgotten item. So let’s talk about it.

First of all it can be replaced. Google “garage door opener controllers (City you live in)” and a number of businesses will pop up that sell the units around $30. Make sure you identify the manufacture and model then call them to confirm they have them in stock. They come with directions on how to code them and you are on your way. Since many sellers have a tough time getting these back over to the house.

Your other option is to stop the closing until they get it. Not too many folks want to take that route.

In Real Estate there is this belief that buyers take a holiday. Don’t you believe it. We just

pulled the activity in Seminole County Florida for the last 30 days. We had 602 homes

go under contract, back in 2005 same time period only 582 homes sold. So get out

and do your open house events we have buyers out there.

Yep, back in the beginning of the year our Insurance companies went to Tallahassee to throw their money around ( I miss speak, our money). Wining and dinning our elected officials ( I think I miss spoke again).  Anyway their cry was it cost to much to insure against sink holes. After all they haven't had to pay out major hurricane claims here for better than 5 years. So they better invent a cost otherwise the insurance commissioner may want them to drop their rates. But wait we have a new Governor in town and he is Business friendly plus he wants to get us out of the insurance business.  So guess what?  I just got my insurance bill today and they are dropping sink hole coverage or I can have an inspection and pay more for my insurance than I had to last year. 

Thank you Gov. and all you Elected officials.  You can count on me not voting for you next election. 

We the people need to embrace term limits and strip our leaders of all their self provide benefits that come from the sweat of our Brows. Please read up on term limits, we need them if we are ever going to get this county back.

Free Video training for our investor class clients.  You will know how

to calculate CAP rate and Cash on Cash Return. Check it out.