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WHAT YOU NEED TO KNOW BEFORE PURCHASING INVESTMENT PROPERTY
Experts at Prudential Network Realty Share Insight on Real Estate Investments
Investing in real estate has been a positive experience for many who took the plunge during the market downturn and purchased rental property. It seems simple, right? Purchase a home and rent it out, charging more in rent than your monthly mortgage and making a profit. Sounds like an easy way to make some extra money, but for those that haven’t done their homework, real estate investments can quickly become a costly experience.
So, is investing right for you? There are many factors that tie into this answer. Do you have a plan? What do you need to know before you invest? The experts at Prudential Network Realty understand the importance of providing all the facts to their clients and walking alongside them, every step of the way to ensure a positive experience.
“Real estate investment can be a gamble and it’s essential that those thinking of investing seek advice from an expert,” said Prudential Network Realty Founder, President and CEO Linda H. Sherrer. “Our agents work with numerous investor groups, including hedge funds and venture capitalists, and are equipped to provide our clients with all the pertinent information needed in order to make an educated decision.”
We asked the experts at Prudential Network Realty to shed light on the top three questions asked by those contemplating this decision:
Q: How important is location in regard to A-rated schools, night life and area attractions?
A: “Location is very important as it determines the type of renter you are targeting. The better the location, the higher the rent. A one- or two- bedroom in an area with nightlife makes more sense as does a three- plus bedroom house in a good school district. If it’s your first time investing, it also makes sense to choose a neighborhood where you would be comfortable living. This often results in the happiest and most successful investors.”
– Liz Bobeck and Josh Nugent
“It’s very important. If the home is situated around these items, rent prices tend to be higher.” – Al Kekec
“I have found that it really depends on the investor. Some properties located near good schools rent a lot faster and have less vacancy. Properties which offer a quick commute to downtown and great shopping and restaurant opportunities are a huge draw and also keep properties filled.” – Allison Steilberg
Q: Is choosing a newer home as opposed to an older home with “character” a better move? Does it matter?
A: “There are definitely perks to both. For rentals, we believe it makes more sense to purchase a low maintenance property. On the flip side, there is a large demand in historic districts. Although maintenance costs may be greater, you may be able to command a higher rent and keep it rented longer.”
– Liz Bobeck and Josh Nugent
“As long as you are making your target returns every month, I don’t think that it really matters.”- Al Kekec
“There are benefits to both. Newer homes are projected to have very few maintenance issues which bolster the bottom line. Older homes with lots of character makes properties like this rent quickly.” – Allison Steilberg
Q: Factors to consider for long term plan – rental investment vs. a resale investment?
A: “Resale requires more capital but you receive the profits immediately. We recommend speaking with a licensed professional about your strategy and seeking advice on the best decision for you.” – Liz Bobeck and Josh Nugent
“There are many factors to consider for both avenues. Reselling the property would make for less repairs and a good location would allow for continuous rental of the property. Either way, I would recommend meeting with an expert before making a decision.” - Al Kekec
“The holding time can be different from one investor to another. If the investor is looking for a quick turnaround and profit, I would recommend flipping the home. If the investor’s goal is cash flow and potential for long term appreciation, then rental would be the way to go.” – Allison Steilberg
“We encourage those who are contemplating purchasing real estate as an investment to contact one of our agents to receive information tailored to their personal situation,” said Christy Budnick, executive vice president of residential real estate, Prudential Network Realty. “There are many factors to consider and each investor’s needs are unique.”
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To find out more on investing in real estate, connect with the professionals for expert assistance in Northeast Florida by calling one of the seven offices which are located in San Marco/San Jose, Mandarin, Ponte Vedra/Beaches, Arlington/Hidden Hills, Avondale/Ortega, Fleming Island or St. Augustine, or by visiting www.PrudentialNetworkRealty.com or on Facebook at www.facebook.com/PrudentialNetworkRealty.
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