Choosing to purchase rental properties is a great property investment decision. It gives you a way to bring in extra income, whether that's on the side or as your main gig.
One of the best places to purchase real estate is in Fort Lauderdale, Florida. This is an amazing housing market where you can make a solid return on your investment.
When choosing rental properties in Fort Lauderdale, however, there are a few things you need to keep an eye out for. Check out this list to learn what they are!
Look for a Good Location
Remember, even the most gorgeous rental properties aren't much good if they're in a location people won't visit. When choosing the right rental property location you need to make sure you're selecting a central location.
A good rule of thumb is to look at the location first and the property itself as the second priority. You can always fix up the property, but you can't change the location once you've purchased it.
Look at the Differences in Your Down Payments
Part of purchasing a rental property means paying a down payment on the land. For rental properties, however, you'll need to put down a higher percentage than you would for a family home.
Typically your down payments will range from 15% to 20%. It's important to look at different properties and evaluate the different requirements and down payment options for each one.
Consider Fixed and Variable Expenses
You might think that once you've purchased Fort Lauderdale land you're ready to start reaping the benefits of investment property. However, you need to remember that there are going to be fixed and variable costs to account for.
A few fixed costs you can plan on include:
- Insurance costs
- Property taxes
- HOA fees
- Property management fees
- Landscaping and cleaning costs
Some variable expenses you should plan on include:
- Unexpected emergencies
- Repair costs
- Unpaid rent expenses
Having these costs in mind helps you budget and plan better for your new Fort Lauderdale property. Compare and contrast these expenses for each property you look at purchasing.
Be Aware of Investment Risk
As beneficial as purchasing Fort Lauderdale rental properties is, there are some risks associated with it too. It's important to consider these risks before you purchase a property.
Common risks you should be aware of include:
- Bad tenants
- Rising taxes
- Expensive upfront repairs
- Changes in the economy
While the risks aren't the only factor to consider, it's still important to be aware of them. That way you're not blindsided if any of these issues do arise.
Find the Perfect Rental Properties in Fort Lauderdale
Now that you've read this guide, you're ready to purchase rental properties in Fort Lauderdale. And you'll be able to choose properties that prove to be a huge asset to you.
If you're ready to get started investing in property in this area, give the team at Home River Group a call. We'll help you with property management for your new Fort Lauderdale rentals!