Read these 7 Miami Investment Property Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Miami Real Estate tips and hundreds of other topics.
One option you have when purchasing a Miami condo or Miami home as an investment property, you can actually assume the seller's home loan instead of securing your own.
Assumption is an interesting option for a home buyer because it means you are probably putting less cash into the transaction. You will probably pay a point to assume the loan, but that cost is relatively low in the grand scheme of things. You're also not starting from scratch with your mortgage loan which ultimately means less interest being paid to the bank.
This type of financing also means that you can close more quickly on your home since the mortgage company has already assessed the property. Of course, not every seller will look favorable on a loan assumption, but it is an interesting option for a savvy real estate investor.
If you are looking to retire in Florida, you may want to consider investing in property sooner rather than later. By investing in a Miami condo or Miami home and renting it out, you'll be building equity toward your retirement and you'll be getting into the Miami real estate market before home and condo values rise even more.
If you can take advantage of a recently rehabilitated older condo that offers great value, or if you can get a deal on a preconstruction unit, you'll be in great shape.
You don't even have to live in the unit you buy, you are just helping your money make money in the area in which you eventually want to settle. Remember, you can also rent your Miami condo seasonally and start taking advantage of it sooner than later.
Making the decision to buy a Miami investment property is not as simple as plunking down the money and reaping the rewards. Before you invest in Miami real estate, you need to calculate the cash flow of the property. This is a relatively simple equation. First, asses the annual rental income and then deduct:
An important Miami Real Estate investment tip: If you don't have 25% to put down, you may be in the red on your Miami investment property for the first few years. If the bank knows that this is an investment property and not owner occupied, they will often require 25% down or you will take a hit on the interest rate.
In many cases a single family home will be easier to finance as an investment property than a condo. This is because the lender is more sure of the home's intrinsic value whereas a condo unit may be more risky. Be prepared with a hefty down payment and your Miami investment property will yield a positive cash flow and a great return on your investment.
If you have the capital to invest in Miami real estate, consider taking advantage of the financing and deals offered by developers on Miami preconstruction condos and homes. In many cases, before the condo is even complete, you can turn around and sell the unit at a tidy profit. You can also hold on to the unit and rent it out.
Some condo developers are not allowing investors to buy condo units because many Miami condos are more desirable if they are owner occupied. However, if you can find a preconstruction opportunity where you can invest early and benefit later you'll be glad you did.
How do you know how to price your Miami condo or Miami home? Here are a couple of tips so you'll know which Miami investment properties will yield the best rent potential:
Smart real estate investors are putting their money in Miami real estate since home values are rising upwards of 15% per year. One way that families take advantage of this is by purchasing Miami condos while their kid's are in College.
Why pay the high room and board prices of the Miami College your child is attending when you could invest real estate and provide them with a safe home environment at the same time. College is usually about spending money but in this case, you'll actually make a return on your investment and make some of that money back.
Here is a short list of Miami Colleges and Universities and their zip codes:
|Sheri Ann Richerson|