INVESTING IN SARASOTA REAL ESTATE
The Sarasota real estate market has fully recovered from the downturn of a few years ago. Don't miss out on a market with high rental demand and appreciating real estate.
Ron F., Sarasota
I had the winning bid on three homes with multiple offers, thanks to David's expertise.
TYPE OF PROPERTY
If you are a cash buyer, a single family home is your best choice for pure cash flow. If you've heard about increasing flood insurance costs, the legislation that caused the threat of drastically higher premiums is no longer in effect. Avoid condos, since fees are predicted to increase because of insurance costs and governmental compliance burdens placed on condo associations.
Single family homes in good condition are more likely to attract a tenant. Even after you factor in expenses such as homeowner's insurance and lawn maintenance, the carrying costs for a condo versus a single family home slightly favor single family homes if you are a cash buyer.
If you are interested in a condo to rent part time and use yourself, you are most likely going to be looking for a vacation condo on one of the barrier islands, such as Siesta Key or Longboat Key. As a rule, vacation condos pay for themselves if you are getting a mortgage, but are not the best choice for those investors looking to maximize cash flow.
THE CAP RATE?
Technically defined, the cap rate is Net Operating Income (NOI) divided by the current market value. It is most frequently used as a method to determine the current value of a real estate commercial real estate, where a comparable value analysis is more difficult, especially with multi-family dwellings or apartment buildings.
Many popular vacation condos on Siesta Key have on-site management that operates the condo complex like a hotel. Management fees and services provided vary from condo to condo. Property management is a competitive business and you should be able to negotiate fees.