Brevard County Real Estate and Investing
We have been getting calls from investors that are looking to purchase investment property. They want to take advantage of our low prices and interest rates. Some want to buy a beautiful house in a beautiful neighborhood, with top of the line appliances and amenities. The feeling is that the nicer the property, the better clientele will be attracted to the property, so the more money they will collect in rent, thus the more money they will make.
There are many fallacies to real estate investing, and owning the nicest and biggest house on the block is one of them.
Real estate is local in nature. And, each market across the country is different. So, I can only speak about and from my experience with Brevard County Florida real estate.
Real estate investing is all about the numbers. If the figures don’t work on paper, forget it. The property should bring you positive cash flow, today. Not tomorrow. Don’t buy with the thought that, ‘I’ll hold it, and make a bundle when I sell.’ Look where that thinking got investors in 2005. Stuck. Remember, tomorrow doesn’t always come in investing. Besides, in real estate investing, you make your money when you buy, not when you sell.
Houses in our area for over $1000 a month are difficult to rent and keep rented. The higher the rent, the lower the number of tenants that can qualify to rent the property. Often they sit empty for months, awaiting that “perfect” tenant. The taxes and insurance are high. Often they have association fees.
And, what is a “perfect” tenant? Some owners have told me that they want only tenants with no children (we aren’t allowed to discriminate, unless it is an adult only community), no pets, non smokers and perfect credit. In my opinion these qualities don’t make a perfect tenant. People with perfect credit don’t need to rent for an extended period of time, and can quickly move to buy a house. Then, an extended vacancy can gobble up an investors cash flow.
Bigger houses in an area where there are some small houses, will help pull those values up on those small houses.
Today, many of the calls on rentals that we get come from prospective tenants with blemished credit, due to an unforeseen short sale or foreclosure. If the rest of their credit looks decent, and they have good solid job history, often these people make exceptional tenants.
For me, as a landlord, I prefer smaller properties in the $650.00 to $850.00 price range. Smaller houses rent for more money per square foot than larger houses. Currently, in our area, this price range is where a high percentage of tenant calls originate. There are a larger number of tenants that qualify for these properties, as the rent is more affordable. They stay rented for longer than larger properties. I’ve had tenants with me for over 10 years now. And, the taxes and insurance are less than on a larger property, often with no association fees.
It’s a great time to invest in Brevard County Florida real estate. But, do your homework first. It’s not about how big and beautiful the house is. Sometimes the ugliest cow in the barn makes the most milk.
And remember, not everyone is cut out to be a landlord.
NOTE: As mentioned, real estate is local in nature, and this information may vary depending on what part of the country you are in.
Specializing in Residential, Investment and Relocation Real Estate
Melbourne Real Estate / Palm Bay Real Estate
Serving Brevard County Florida for 15 Years
Brevard County Resident for 36 Years
Melbourne, Palm Bay, Suntree, Viera, Rockledge,
Cocoa, Canaveral Groves, Titusville, Mims, Melbourne Beach,
Indialantic, Indian Harbour Beach, Satellite Beach,
Cocoa Beach, Cape Canaveral
I buy, sell, rent, own and manage Investment Property.