David Barr's Sarasota and Venice Real Estate Blog

From today's Tampa Bay Times:  Another Apartment Complex Headed to West Shore Read the article here:  http://www.tampabay.com/news/business/realestate/another-new-apartment-complex-headed-to-westshore/2173589 Why is this a reason to invest in Sarasota real estate, as opposed to the Tampa area? 1) Building apartments indicates a weak demand from home buyers.  In the Sarasota area, builders are focusing entirely on single family homes and villas; 2) Apartment complex rentals are usually at a lower rental rate than single family home rentals; 3) Individual investors trying to rent existing condos or single family homes have to compete against resort-style amenities in new apartment complexes; 4) Bringing new apartments into existing rental inventory increases rental property supply and drives down demand and rental rates; 5) New apartments are usually lower-quality stick built above the first floor, while new condo construction is usually concrete block with incre...

Everybody is reading how Sarasota is a great place to invest in real estate . And that's the problem that stops many people from actually investing here. Casual investors don't realize we are transitioning to a seller's market, and most properties under $150K will be multiple offer scenarios.  These investors also don't realize they have little time to make a decision once a property comes on the market.  Lowball offers have zero chance of being accepted. For investors who are skittish about multiple offers, my suggestion is to contact me about opportunities in other parts of our market that are lesser known.  Rental demand is strong across the three county area I serve (Sarasota, Manatee/Bradenton, and Charlotte Counties).  

One of the things I find when working with new investors or casual real estate investors is that they are not familiar with current rental rates. The rental demand in the Sarasota area is strong.  I am also recommending that investors consider the Venice area as well.  It's off the radar for most.  The buy in is a bit lower and the rental rates are similar to Sarasota. A good place to look at what's happening in our rental market is to check out Craig's List:   http://sarasota.craigslist.org/apa/ It's time to get in the market!  Read more on my website:  www.davidbarrhomes.com/investors

UPDATE 3/15:  View my analysis of this topic on my website. I received a couple more calls from out of town buyers, asking about condos as investment property.  There's so much evidence that single family homes are a better choice for Sarasota real estate investors than condos, I thought I would lay out a simple analysis. Fees :  No HOA in non deed-restricted single family neighborhoods.  You do not need to buy in a gated community for investment.  Condo association fees average $300 monthly and are predicted to increase with insurance and regulatory changes.   Advantage:  Single family home . Management :  You will need a management company whether you choose single family home or condo. Application :  Prospective tenants need to pay an average $100 application fee for condos.  No application fee necessary for single family homes.   Advantage:  Single family home . Demand :  Condos do not usually permit tenant...

More and more Canadian real estate investors are finding my website, www.davidbarrhomes.com , and the advice I provide there , a valuable source of information before their visit to view properties in my service area of Sarasota, Manatee, and Charlotte Counties. A recent buyer presented an illustrative example of what is currently happening in the real estate market, particularly for condos at the entry level price points under $100,000. Six months to a year ago, the choice for condos under $100,000 was quite easy.  Pick the newest ones that needed no work, and a long-distance buyer had an investment property ready to go for a tenant.  Today, the landscape has changed.  Those newer condo communities now have a dwindling inventory of units for sale, and those prices are increasing.  Combine this with a growing inventory of units for rent, and the previously obvious condo choices no longer make sense for many investors. What remains for condo buyers looking at e...