Buying for Investment

 Consider the following when buying an investment property:

 1.      Rent: Lookup at the price of the rent in the area/building you are interested in. In case you are interested in Edgewater, Midtown, Venetian Isles or Miami Beach, you will be able to find in my website, the rentals available in each building in the area at the moment. If there are no rentals at the moment, ask me to give you a report of the closed rentals of a particular building or area.

2.      Mortgage Requirements: Consider downpayment, mortgage rates available and your credit score in order to calculate your estimated monthly payment. Best to do is to get a pre-approval from a mortgage broker in order to have a more clear view. The mortgage broker will provide you with options that you can include in your calculations.

3.      Property taxes: Verify accuracy of taxes listed in the MLS (Multiple listing service). If the property is a new construction and is being sold by a developer, you can estimate around 1.75% - 2.00% of the purchase price as the property tax amount due yearly.

4.      Homeowners insurance: Insurance can vary depending on the region, pay attention to flooding areas. You can get a quote of the property you are interested in. You might want to contact an Insurance agent, go to the Team of ExpertsMore Info page in this Website to find one.

5.      Maintenance: keep cash on hand for repairs - at least apprx 10-15% of annual rent.

6.      Association fees: Take into account the monthly amount to pay to the association, some communities charge monthly fees and quarterly fees, do not overlook any fee. Specially if buying condos - be sure the association accept rentals.

7.      Utilities: Service like water and sewer are usually responsibility of the landlord, however, they are usually included in the Association monthly fee and you won't need to include them separately in your calculations.

8.      Tenant search: Hiring a realtor to rent your property or hiring a property manager to handle your rental will carry an additional cost to consider. Usually, fees to rent the property are 10% of annual rent and fees to manage the property are also 10% of the annual rent.

9.      Vacancy allowance: Consider at least two months in a year of vacancy when settling rents.

If you consider all these expenses in your budget and are still in black, the rental property might be a good investment.

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And to start, I will provide you with a detailed price analysis of your property asap!