Saturday, August 10, 2013

Investment Property in Sarasota FL

Investor interest in Sarasota real estate remains high.

So why not follow the leaders?  Hedge funds, most notably Warren Buffet, are buying single family homes to hold, produce cash flow, and sell later when the property appreciates.  Why?  Condos are a dime a dozen, have increasing carrying costs (association fees), and do not appreciate as rapidly as single family homes.  Depending on the area, condos also compete with shiny apartment complexes with fitness facilities and resort-like pools.  It's harder to park a boat or a 2nd or third car at a condo, or have pets as a tenant.

I've been saying all along, single family homes are the best bet for finding a quality tenant quickly and holding for appreciation.

Appreciation is highest for single family homes as close to water (beach, bay, or intracoastal waterway) as possible.  It does not matter at all if the home has stainless appliances, a tile mosiac backsplash, travertine floors or a walk-in closet.  What does matter is the home you choose for your investment is clean, staged in neutral colors, structurally sound, and is covered by a comprehensive home warranty.  The most important criteria in choosing your real estate investment is location, location, location.

A true investor takes emotion out of the equation.  You don't have to want to live in the property yourself.

Vacation condos on Siesta or Longboat Key have strong seasonal demand.  Despite management fees, increasing association fees, and vacancy during the off season, these condos usually do pay for themselves, and appreciate well over time.  However, they are not the best choice for producing the regular cash flow most investors are looking for.

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