One of the routine inquiries I get is from beginning real estate investors. I always start with two questions: 1) are you planning on flipping the property (buying a property that needs work, fixing it up, and reselling it) or renting it out? 2) what sort of return rate are you trying to get?
Flipping is difficult in Miami. It's very difficult to find a property that can be bought cheaply enough, so that when work is done, a decent profit margin can be realized. Pro tip: if you're buying a home that does need work, you also need to include the cost of carrying the house while the work is done and resold. Minimum of 6 months, but frequently much longer. Overlook the cost of paying for property taxes for a few months, and suddenly that "steal" may become "no deal"
Much more successful in Miami is to buy a property and rent it out. Return rates on this vary widely though, so it's important to understand your numbers. I've helped investors calculate return rates as low as 0 percent and as high as 20 percent. Clearly... a 0 percent return is a horrible investment. But finding an investment that returns 20% a year isn't easy either.
Author:Ann Ryan Phone: 786-332-7042 Dated: March 4th 2018 Views: 61 About Ann: ...
View our latest blog posts in your RSS reader. Click here to access.
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
When I am writing a contract for my buyers, I only schedule closings f
"I want to Thank Dan Clark for being our Realtor. He sold our house only 18 days, and best of all he sold it for 2.9% above our asking price, which means he got us an extra $3,500.00 more in our pocket! He definitely went above and beyond with his 89 point marketing plan and got our home sold fast. Dan is very hard working, professional, motivated and very knowledgeable in the real estate market. If anyone is looking for a highly motivated and effective Realtor I highly recommend Dan Clark. You are the best!!! Thank you again Dan."