Top Tips When Buying Investment Property in Broward County
Broward County Florida offers many different options for a successful real estate investor. But even a slight error may set you back and so we at TrueNest Property Management want you to feel confident that your investment is the right one.
Rental homes can create a positive cash flow and boost your wealth. But to make the most of this investment, you need to understand the real estate market along with the most effective choices you can make regarding an investment.
In this article, we here at TrueNest Property Management will start with the basics of buying an investment property in Broward County and then outline some important factors to make the most of your rental property purchase.
What Is the Broward County Real Estate Market Like?
In 2018, tax reform drove many people from the Northeast of the county to South Florida. The state’s low property taxes and complete absence of income tax have made it highly attractive. Consequently, luxury homes and condos located in Broward County have seen a rapid increase in sales.
Broward County is a great place for investment for many reasons, but primarily because housing demand is higher here than in other local areas like Fort Lauderdale. Furthermore, high-end single-family homes make up the majority of sales in Broward County according to a report from the Miami Association of Realtors.
Rental homes will always be in demand. People are always chasing new job opportunities and locations suitable to their needs. As a smart rental property investor, it pays to grow your income by considering adding more to your investment portfolio from great areas.
Top Tips for Real Estate Investments in Broward County
Find Properties in Your Price Range
Before picking the property type you will look to invest in, it’s wise to set a budget. This way, you’ll be more focused on what type of property you plan to own in Broward County. A number of studio units, apartments, townhomes, single-family homes, and duplexes are available as investments depending on your capital.
Starting with a fixed price rate helps you filter out any properties that are beyond your price range. It also hastens your decision-making process on which property is suitable to invest in.
Before working out the price range you’re comfortable with, it’s important to note down that properties may require you to pay additional HOA fees and other associated taxes as these can be rather large charges that may catch you off guard.
Buy into High-Rent Neighborhoods
As a property investor in Broward County, you naturally want to maximize your investment returns. To achieve this goal, it’s essential to know where the high-rent areas in Broward County are.
You’re also required to consider any renovation fees you may spend to make your rental home more attractive to prospective tenants. Striking the perfect balance is a must to achieve your investment target.
Crunch the Numbers
It’s crucial to understand the potential returns of your property investment in Broward County. But it’s important to be conservative considering any growth predictions.
Should the rental income fall below your expected amount, you’re better be prepared. After all, when the gains are greater than your modest projections, you’ll welcome the turnaround.
Find the Right Neighborhood
When you are buying an investment property, location is one of the most important things. You should assess the recent monthly rents of other similar rental units. This should help you better predict the future market direction.
A simple online search helps you to learn where any major developments are happening. So, be quick to spot new infrastructure construction.
Do you see new schools being built and real estate communities being developed? If yes, that area is soon to be part of the economic growth in that specific location.
Hire a Property Management Company
When you close the sale of your unit, it can be a very exciting time. But you shouldn’t let the responsibilities get the better of you. Managing a single unit takes considerable effort and if you manage a few, the effort could be more.
For starters, landlords are expected to keep the Broward County rental home habitable. This means addressing the property issues and promptly fixing any damages in your rental place. You should also be ready to resolve tenant complaints and attend to emergency concerns on your property.
Some property owners prefer a hands-off approach when managing their units. As a result, they hire a trusted third-party property management company to oversee their rental real estate.
Bottom Line
When buying an investment property, you have many different things to consider. Begin by setting a budget. Next, map out the neighborhoods where high rental income can be gained. After that, you need to run the numbers and research areas where developments are flourishing.
Finally, figure out if being a hands-on landlord is one of your goals. Be honest if you have the time and energy to attend to the daily demands of the rental home and your renters.
If not, you can always choose to engage the services of a reputable property management company like TrueNest Property Management. We’re professionally equipped to handle the needs of your Broward County rental home.