As more and more families are either voluntarily leaving their Florida homes or are being forced out by foreclosure, some Florida investors are seeing the housing crisis as an opportunity. As the tide goes out on home ownership, the tide comes in on home rental.
Residential real estate investors are able to purchase properties to renovate and turn into rental homes, rather than 'flipping' the property as was more common during the housing boom at what many consider bargain prices. Investment properties that become rentals are offering a better return on their money for some commercial owners than even banks or the stock market.
"The banks are paying 0 percent interest," lamented one investor. But he's made offers on residential real estate where he projects, "[T]he rent stream will return 25 percent on my investment."
The good news for homeowners is that these real estate investors are helping to unclog the real estate market. Despite the bargain prices that many people report finding on these investment properties, an occupied rental property may make a much better neighbor than a vacant home that is no longer maintained.
In terms of investment property, one investor in the Tampa Bay area considers this to be, "[T]he most intense buyer's market that I have seen in 35 years of owning real estate."
But, investing in Florida real estate with the intention of managing rental property is not for everyone. Few banks will offer financing to even what might be considered the most qualified buyers. The investors who can truly make it in this market are those who can come to the table with cash and are willing to pay over the asking price on a property.
Source: Tampa Bay Times, "More investors put cash in rental homes," Katherine Snow Smith, Feb. 19, 2012
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