Top Features of a Profitable Rental Property in Miami

Real estate investing is a low risk investing strategy and it is also one of the best ways to make money. One of the biggest fears of every person considering buying a rental property, is buying an unprofitable property.

There are numerous qualities in a house that buyers should consider before making an offer. Here’s our top tips on what to look for in an investment property for maximum return.

1. IT IS WITHIN YOUR BUDGET

Set a budget. The first step to buying a profitable rental property is to make sure you can afford it. It is important to consider what you are willing to spend on a property. Keep in mind that the bigger a deposit you have saved up, the more options you will have when it comes to choosing a property.

You should calculate your savings and income, as well as your monthly spending habits to see how much you can afford to spend on down payments and mortgage payments. You should not have significant debts and you should have a good credit score. The higher it is, the more likely you are to get a good deal on a mortgage.

Take into consideration that it is not going to be a good investment if your costs are more than your rental yield.

2. LOCATION, LOCATION, LOCATION

Research the area. Homes can vary and fluctuate widely in value due to their location. Nearby attractions, scenic views and schools are all factors that can drive up the value of a location. On the other hand, crime rates, hazardous conditions, nearby commercial or industrial properties can drive values down. It is advisable to select a neighborhood that is suitable for long term stays.

Similar properties within the same geographical area are compared when determining property value. If the area you want is not within your budget, you can expand the search radius or move further away from amenities that might bring the price up.

3. FUTURE DEVELOPMENT

One of the largest factors to consider when buying an investment property is the local market and future development of the area. 

Rental property investment continues to grow in Florida. This growth is attributed to rapid urbanization which is expanding the rental housing market.

According to Forbes magazine, the hottest housing markets in Florida in 2021 are: Cape Coral, Port St. Lucie, Miami, St. Petersburg, and Tampa.

4. AGE OF THE PROPERTY MATTERS

An older home may need more upgrades, repairs, and improvements. If you will be purchasing a property built several decades ago, make sure you have the budget for renovation projects.

Tenants appreciate an updated kitchen and bathrooms. Keep in mind that the number of bathrooms in a home can also be an important factor.

5. IT IS THE RIGHT PROPERTY TYPE

You should keep in mind that this is an investment that needs to appeal to a wide range of people and not necessarily you. While of course it is important to buy a property you like, it is advisable that you keep in mind what your future tenants might be looking for.

As a landlord, your main responsibility is to keep your tenants satisfied by maintaining the property in good conditions and providing repairing services when needed. At Pristine Property Management we can assist with any necessary repairs, renovations, tenant screening and management of your property. We take care of your investment. Contact us today.