Many home owners dream of turning their first home into an investment property for passive income. Others are buying a home with direct intent to rent. In both scenarios, consider reaching out to a property management company to help ensure you’re setting yourself up for success—prior to making a commitment on a home. Gulf Coast Management Group offers free consultation and home rental evaluation services. The value of talking to an experienced property manager could make all the difference.
Two items to consider when purchasing a home with intent to rent:
Consider homes that don’t require a lot of landscaping maintenance for you, or your renters. In most Southwest Florida neighborhoods, it’s common to expect renters to mow their grass. However, you can’t expect all renters to want to keep up with planting seasonal flowers or keeping the weeds out of huge plant beds. Keep it simple.
Major Updates Completed
Most homes in the area priced $150,000 and below will traditionally need some work—you can expect outdated kitchens and bathrooms, old carpet and few modern upgrades. Generally speaking, a fresh coat of paint, new floors and needed repairs are the most popular investments that prepare a home for renters.
With that being said, there are a few updates that can reduce the likelihood of depleting your rental property emergency fund right away. Give greater priority to the homes that have newer roofs and HVAC systems. The idea is to avoid large repair and maintenance expenses right up front. If you are considering an older home with an old roof and HVAC system, the home itself should be a great deal with clear signs of a return on investment following upgrades.
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