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Multifamily Investments in Florida Get Huge Returns!

Admin2 — Tue, 17 Oct 2017 04:30:10 +0000

The Sunshine State has the greatest number of cities on Forbes’ Best Buy list in the country: Orlando, Fort Lauderdale, Cape Coral, Miami, Jacksonville, West Palm Beach and Tampa. But smart multifamily investments in Florida aren’t limited to this short list; real estate values are increasing at a rate of 9% to 14% in ALL of the cities in Florida. That means, even if your multifamily units were empty, you’d still be making money!

Think of the all the people who have become extremely wealthy through real estate and you’ll realize that they did so by owning multi-units. When it comes to residential real estate, there are two main types of properties investments: single-family and multifamily units— including duplexes, condominiums, apartments, retirement complexes and others. Real Pro understands the advantages of multifamily investments and can help you find the best real estate deals in Florida.

What makes multifamily investments so great?

1) Reliable income. A vacant single-family home means zero income. However, barring a major disaster, a multifamily investment property in Florida will rarely sit completely unoccupied… even during high turnover seasons. This gives you the leeway to repair or renovate vacant units, and the time you’ll need to find quality tenants.

2) High demand. There is a large base of tenants looking for multifamily homes. A recent study by the National Multifamily Housing Council shows only one-third of rental properties are single-family homes and 63 percent are multifamily. While a single-family home investment also increases in value and creates a positive cash flow, it is only one source of income. A multifamily investment property in Florida can be as small as a duplex and as large as 1000+ units. Real Pro clients are usually new investors who have as little as $25,000 for a down payment; as such, we focus on small to medium multifamily properties.

3) Better value. The price per unit will be much lower than it would be if you dealt exclusively in single-family properties. Yes, the price tag can be daunting, but the return on investment is second to none. In the overcrowded single-family rental market, multifamily properties are a blessing in disguise. Before you discount that downtown high-rise or the contemporary duplex, consider the possibility of a generous ROI. Real Pro knows that multifamily investment properties in Florida might just be the investment of a lifetime.

4) Lower maintenance expenses per unit. Because of the shared walls, yard, plumbing and electrical systems, etc… maintenance expenses are greatly reduced. For example, an internal plumbing problem for a single-family home can be just as expensive to fix as one in a multi-family property. Everything from landscaping to the cost of electrical supplies will be less expensive per unit. Real Pro has the connections you need to attain and maintain your multifamily investment property in Florida.

5) Lower management fees. It’s easier to manage one building, or hire a property manager for a single building, than to tend to several separate single-family homes. A property manager is typically paid a percentage of the monthly income the property generates, which means they are motivated to find and screen tenants, collect rent payments, handle evictions for non-payment and maintain the property to attract new tenants. 72% of multifamily investment properties in Florida have 10 units or more; it’s easier to manage contractors, bills, taxes, etc. for one multifamily structure than ten single family homes.

6) Easier financing. It might seem as though securing a loan for a single-family property would be easier than trying to get money for a million dollar complex, but the truth is a multi-family property is more likely to be approved for a bank loan than the average home. That’s because multifamily investments in Florida consistently create a strong cash flow month after month. This remains the case even if a property has a handful of vacancies or a couple of tenants who are late with their rent payments.

If those reasons aren’t enough for you think about purchasing a multifamily investment property in Florida through Real Pro, consider this highlight from a 2017 Freddie Mac Outlook report: “Florida will see strong rent growth in 2017 because increased demand outpaces supply, allowing landlords to raise rents at a quick pace. As Florida emerges from the Great Recession, they have added jobs and experienced population growth but have not had as much of an increase in multifamily construction as many other areas have had. Vacancies are expected to decrease in 2017 as strong demand brought on by a growing job market and relatively little new supply will push vacancies down and rents up.”

Read more at RealPro.com

The post Multifamily Investments in Florida Get Huge Returns! appeared first on Aspire Development.

Should You Invest In South Florida Real Estate?

Admin2 — Tue, 17 Oct 2017 03:56:19 +0000

With a large number of second homes and condos, South Florida is prone to boom and bust cycles that stem more from investment hopes than housing needs. Add an expanding Latino population and waves of baby-boomers – two million retiring every year – and you get both risks and opportunities. Demand for Florida housing is always growing, but is it growing slower or faster than the supply?

The percentage of second homes increases as you head north from Miami, to 20 percent in Palm Beach County. This large pool of empty properties is the swing vote in home prices. It can swamp supply during a downturn but also represents the desire of future retirees – and South American investors – to buy while they can.

Home prices were strong in the last three years – up 40 percent – and I expect they’ll keep rising 10 percent a year. But… How much of that 40 percent was from speculation in foreclosed condos? How much from ‘real’ demand? There are strong reasons to believe that from here on we are looking at prices going higher than they ‘should’ – especially in Broward County – in other words a mini-boom that will fizzle after a few years. If you’re looking to buy for the long-term, do it now. If you’re looking for a short-term investment, be very, very careful.The economy of Miami itself is diversified – with an important finance sector – but as you go up the coast more jobs are in retail and services. Healthcare is the largest creator of jobs in all three counties, and growing rapidly.

Because rents held up better than home prices during the recession, buying a property to rent out is an attractive option despite the recent rise in prices, less so in Palm Beach County, more so in Miami-Dade and Broward. Almost half of households in Miami are renters. With most the new healthcare and retail jobs paying low wages, the renting population will increase. In urban areas it makes sense to buy a single-family house and split it into rental units. Apartment buildings are a good option in Miami – at the right price.

Mortgages are a difficult investment right now. Because home prices will keep rising the next few years, the equity cushion for new mortgages will grow quickly; on the other hand, prices are almost too high in Broward and Miami-Dade already, which means these mortgages will have a rising risk of default. Just because the last bust is over doesn’t mean a new one isn’t around the corner. Lenders should back away from high loan-to-value mortgages during this period. The same is true for construction loans; new projects should be financed in very careful stages.

Population is growing at an uneven pace, slower in Miami, faster as you move up the coast. Over the next three years I expect a 10 percent increase in housing needs in Palm Beach County – 30,000 owner properties and 23,000 apartments. I expect 25,000 of each in Broward, and in Miami 30,000 houses and 36,000 apartments.

The climate for investments in retail businesses and restaurants is best in Palm Beach County, where demand has grown quickly the last two years and average income is the highest. All three counties, but especially Palm Beach will need office space for the growing number of healthcare workers.

Read more at Forbes.com

The post Should You Invest In South Florida Real Estate? appeared first on Aspire Development.

10 Best Real Estate Markets to Invest In Now

Admin2 — Fri, 27 May 2016 18:47:36 +0000

It’s well known that some cities weather tough economic times better than others (Hello, Detroit? Are you still standing?). A recent Standard and Poor survey revealed that housing prices nationwide have fallen to their lowest levels since the beginning of the great recession.

If you’re a homeowner, this probably doesn’t come as a surprise to you. Many American homeowners find themselves upside down on their mortgage loans, owing more than they could sell the home for in the current marketplace.

But if you don’t own a home, now might be a great time to buy real estate – especially if you live in one of the following cities, where the real estate markets have been hit the hardest.

1. Cape Coral – Fort Myers, Florida

The Cape Coral – Fort Myers area, on the Gulf Coast of Florida experienced the single largest decline in home values since the beginning of the recession. Home values in Cape Coral and Fort Myers have fallen 59.1% to a current median price of $87,300.

2. Saginaw – Saginaw Township North, Michigan

Located near Grand Rapids, Michigan, the Saginaw Township area of Michigan was the number two hardest hit area in the United States in terms of real estate values, with an estimated decline of 53.7% since 2008. A single family home in Saginaw Township currently costs an average of $30,300.

3. Akron, Ohio

Families and residents of Akron have seen their home values plunge 48% to approximately $50,100 for a single family home.

4. San Francisco, California

The prices in San Francisco were so high to start with, that for most of us, the cost of purchasing a home within the city of San Francisco will remain a dream. But if you have the cash on hand, you can snap up a 42% discount on real estate, which makes the average cost of a single family home in San Francisco ring in at around $402,000.

5. San Jose – Sunnyvale – Santa Clara, California

Perhaps because the cost of housing in the golden state was so high to start with, home values in Southern California have suffered significantly during the economic downturn. Homeowners in the San Jose area have seen the value of their houses fall approximately 42% from 2008 highs. Before you get too excited about the prospects of buying a California dream-house, however, you better get saving; a house in the San Jose area still costs an average of $450,000.

6. Phoenix – Mesa – Scottsdale, Arizona

The speculative bubble that had driven home costs in the area to exorbitant new highs during the early 2000’s came crashing down a few years ago. Homes in the metropolitan areas of Arizona, especially Phoenix, fell in value by around 41% to an average of $129,000.

7. Sarasota – Bradenton – Venice, Florida

Located near the extremely popular Tampa/St. Petersburg region on the Gulf Coast of Florida, the Sarasota area has been hit pretty hard with an average real estate value drop of 40%, and a resulting median home value of $155,200.

8. Riverside – San Bernardino – Ontario, California

The Riverside area in California, like much of the California market has witnessed a huge drop in home values to the tune of 39%, which resulted in the median home value in the area falling to around $172,000.

9. Las Vegas, Nevada

Sin City got slammed during the recession. The glitz and glamour of the strip couldn’t protect the citizens of Vegas from witnessing the values of their property fall by around 37%. A home in the Las Vegas area in the wake of the recession will set you back around $155,300.

10. Miami, Florida

The real estate market in and around South Florida was hit pretty hard by the precipitous drop in nationwide real estate values, and with a 35% average drop in value in the Miami area, now might be just the time for sun worshippers to purchase a home in the sunshine state. A single family home in Miami will currently cost you around $206,000.

Final Word

Sure, real estate prices have come down, but the fact is, in most places they were too high to start with. If you’re in the market for a home, now’s the time to take advantage of the excellent discounts relative to a few years ago.

But with all the deals out there, you still need to be smart in your decision. Read up on these factors to consider before investing in real estate, check out an analysis of the renting vs buying a house debate, and do your best to avoid common home buying mistakes. As always, with a decision this big, it is imperative to consider all of the factors before taking the plunge and becoming a homeowner.