When you’re an investor, your eyes are on the lookout for fantastic opportunities. But how do you identify them? Here are five unmistakable indicators that you’ve stumbled upon a remarkable deal while purchasing real estate in Florida.
5 Signs of A Great Deal When Buying Florida Real Estate
No Zoning Issues or Liens
Ensuring you thoroughly investigate a prospective investment for zoning complications or property liens is crucial. If the property you’re eyeing doesn’t possess the appropriate zoning, your initial plans for its use might be hindered. Equally critical is confirming that the property you intend to acquire is free of any liens. Should you proceed with the purchase, these liens could become your responsibility to settle, ultimately impacting your return on investment.
No Expensive Repairs
If a property you’re keen on doesn’t exhibit major structural problems, it might be wise to present an offer, especially if the price aligns well! Even a somewhat outdated kitchen doesn’t warrant an immediate replacement if it’s still operational. You needn’t conform to the television trend of renovating every kitchen and bathroom in every property you acquire for investment. It’s acceptable to renovate gradually based on your budget, even if it extends over years. Prioritizing the property’s profitability before injecting additional funds beyond essential requirements is key.
Priced Near Assessed Value
When a property’s price aligns with or falls below the value determined by the county assessment, it’s a clear indicator of a fantastic deal! Generally, the market value tends to hover at a range of 10-25% higher than the county assessed value. However, exercising caution is crucial, as if a property’s price significantly undercuts its market value, there could be underlying issues or reasons driving this unusually low pricing. You might find yourself fortunate with an exceptionally motivated seller offering a remarkable property. Conversely, you could stumble upon a property owned by a bank, and it’s possible it comes with certain damages or concerns.
Passes 1% Rule of Thumb
Real estate investors have a handy rule they often rely on to gauge whether a property’s cost is worth it. This guideline suggests that the amount a property can be rented for should be roughly 1% of its purchase price. Let’s say, for instance, a property could fetch around $1,400 in rent each month. According to this rule, an optimal purchase price would be approximately $140,000 to ensure a profitable investment. To put this rule to work, you’ll need to dive into researching the property’s potential rental income in line with the current market conditions.
When it concerns evaluating a property, having a nice and appealing exterior is like a cherry on top! This can lead to saving hundreds or even thousands of dollars by avoiding potential renovation expenses. It’s also important to examine the overall shape of the house and ensure it appears sturdy and well-maintained. Another significant aspect of exterior appeal is having a roofline that looks straight and balanced. Occasionally, due to add-ons or past damage, the roofline might be slightly off or not match the house’s overall design. Another aspect to be cautious of is differing types of siding on the house. This might also suggest an addition that could come with underlying structural problems.
If you’re a real estate investor searching for fantastic deals on Florida properties, don’t hesitate to reach out to 123SoldCash.com - Phone: 786-904-1444 today at (786) 904-1444. We’ll take care of all the groundwork to find your perfect investment property. Just let us know the features you’re seeking, and we’ll present you with a range of options.