Friday, December 5, 2014

Investing in Sarasota and Venice FL Real Estate

There's been some news about real estate investors tapering off their purchase activity as housing prices increase.  That doesn't mean that the smart investors are giving up, because there's still good deals out there and a lot of rental demand in both Sarasota and Venice.

For years after the real estate market downturn in 2008, it was easy to pick the low-hanging fruit of a $100K foreclosure, fix and flip it, or clean it up to rent for cash flow property.  In today's market, smart investors are factoring price appreciation in their formula for picking properties.

Sarasota and Venice real estate is appreciating at healthy rates, but the higher overall price point of Sarasota versus Venice makes Sarasota a more difficult area for a newer investor to dip their toe in the market.

Let's look at a side by side comparison of the two areas:

Sarasota

  • Target price range $150-$200K
  • Highest rental demand:  Bahia Vista south to Clark Rd, west of Beneva and east of Tamiami Trail
  • Estimated rental rates:  $1300 to $1700 per month for annual tenant
  • Housing types: single family home resales, 1300-1500 sq ft, minimum 3 bedroom 2 bath
  • Estimated major expenses: $900 per month mortgage with 30% down on a $175,000 loan, $2500 per year in homeowner's insurance, $3000 per year property tax, and management fees of 7-10% per month on the gross rent
  • Appreciation:  7-9% annually
  • Many homes have NO HOA fees

Potential Sarasota investment property $159,900


Venice

  • Target price range $120-$150K
  • Highest rental demand:  Geographic area surrounding Tamiami Trail, south of Center Rd, and the area surrounding Hwy 776 south to Manasota Beach Rd.
  • Estimated rental rates: $900-$1200 per month, annual tenant
  • Housing types: single family home resales, 1100-1400 sq ft, 2 bedroom and 2 bath minimum
  • Estimated major expenses: $670 per month mortgage with same terms as above, $2500 per year homeowner's insurance, $2000 per year property tax, similar management fees to Sarasota
  • Appreciation: 7-9% annually
  • Homes are available with NO HOA fees

Potential Venice FL investment property $133,900 with pool

If you are thinking of investing in Sarasota or Venice FL real estate, please contact me to help you find the right property.

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