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The Best Advice for Purchasing and Maintaining a Florida Vacation Home
If you’ve dreamed of owning your own Florida vacation property, you can make that dream a reality. The key is in making your choice wisely. Follow this great advice for buying and maintaining your own Florida getaway.
Why Florida?
Purchasing a rental property is a big investment. Whether you're looking for a location to ride out the winter with your family and pets, or are on the market for small real estate investments, you want to make a good return on your venture. Happily, Florida offers a thriving real estate market.
Decide on Criteria
Your first priority is deciding what sort of location you desire. For instance, do you want to be in or near a city? Inland or close to the shore? A cottage or condo? While some first-time investors are under the impression that spending a higher amount means making a higher income on rentals, that isn’t necessarily the only way to make money. Lower-cost, smaller properties in well-selected locations can make money for you if they appeal to the right renters. As an example, if you invest in a property that is close to an amusement park or sports stadium, you can expect regular renters who are attending events.
Next, you’ll want to determine your budget and whether you plan to recoup some of your investment by renting the property when you aren’t there. Crunch some numbers and decide what you can afford, and commit to staying in your budget. If you own your home and wonder whether or not you should refinance in order to have more cash to purchase a second home in Florida, weigh the options of going Conventional.over FHA. Remember, no matter which way you go, though, there will be costs involved, like closing fees, to keep in mind
Make a List
Once you have a good idea of your priorities, do some research and list locations that meet your criteria. The sort of things you would want to weigh are the age of buildings, number of bedrooms and bathrooms, square footage, and the amount you could expect to charge for rentals. Since your primary investment will be the purchase of the home, Huffington Post recommends avoiding properties that require significant repairs. Also, don’t pay market value. If you can’t buy the home at 10 to 20 percent below the current market value, walk away. You want to start out with that much equity as a cushion in case you need to sell the property sooner than expected.
Maintenance
Some people elect to maintain their vacation homes themselves. One opinion is that it’s a great way to save money so long as you can stay on top of things, regardless of distance. You may need to hire a housekeeper, handyman, or security service to assist you. Be sure to take into account any special amenities, such as a pool. You would need to take steps toward protecting your pool while you're away, using alarms, safety equipment, and an appropriate pool cover.
Property Managers
Unless you plan to care for a property yourself, you’ll need to hire a property manager to tend it for you. You’ll want to investigate references, and HGTV recommends checking with the Better Business Bureau and Real Estate Commission to ensure prospective property managers are licensed and have a good record. Meet them, find out how they handle advertising and vacancies, and discuss what contractual terms are agreeable to you.
Be aware there are scammers out there who will do things like lease your property without your knowledge, so thorough investigation is vital. Also keep an eye on your utility bills for usage spikes when the home is empty, and pop in unannounced sometimes. Follow your instincts if something seems awry.
Florida Getaway!
Purchasing a great Florida getaway can be your dream come true. Decide what sort of place you want, tally your budget, determine how you will maintain the property when you aren’t there,
and work with Hughes Homes Realty to purchase a home. With these great tips, you’ll be set up for success in your new vacation home!
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