Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

My wife and i are interested in purchasing an investment property in Florida.?

We are thinking of the Orlando area but don't know where to start as we live in Ireland. We see ourselves using the property for 2 weeks a year and would like it rented out for the rest of the year.

Is buying on a resort a good idea? Will they manage the rental of the property? How much do the typically charge for maintanance? Ideally we want the rent to pay the mortgage.

Any suggestions on the matter would be much appreciated.

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  • 1 decade ago
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    Buying land in the US is a good investment. You might consider purchasing stock in a company like Weyerhaeuser as an alternative.

    One concern that I'd have is that Florida is wet and humid. If you are an absentee landlord, there is a great risk of damage to your property unless you use a property management company that is very reliable.

    As pointed out in other posts, as the cost of oil skyrockets (see "Peak Oil") you can expect fewer vacations to distant locations, and may have trouble renting the place.

    Also, within a 100 years, we expect most of Florida to be under water because of global warming. It's probably not going to flood for decades, but it's still a concern. Global warming is also going to increase the violence of storms, and some insurance companies are canceling policies in danger zones.

    I suggest that you look at another part of the country that has fewer risks, or invest in stock with a company that maintains a large portfolio of land.

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  • Depend on whether you want to turn it into income property or you just want to break even.

    Is buying on a resort a good idea?

    Ans: if the # works out, and you can rent it out, anything will work. You can contact the local property management company for more advice. Since u want to live there for 2weeks, it may be a bit messy - not sure, consult a lawyer for how to draft the leasing agreement.

    Will they manage the rental of the property?

    Ans: Who are they? I think average property management cost less than $100 per unit. (Depends)

    How much do the typically charge for maintanance?

    Ideally we want the rent to pay the mortgage.

    Ans: Depend on ur property conditions and the renter.

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  • 1 decade ago

    The values in Orlando have not gone back to the point yet where it makes sense to buy yet. About 1 in 10 homes in in foreclosure or going to foreclosure and with all the people desperate to rent out their investments rents have actually been decreasing in the Orlando area. If you are going to buy there are alot of things you need to think about like taxes and insurance which are currently very high in Florida. If you buy a $250,000 home you can expect to pay $1500 plus a year in insurance and around $4000 a year in taxes. Last report I saw had Orlando as the #2 worst realestate market in the U.S. only behind Miami. I would say wait till atleast 2010 unless you want to pay a 20% premium.

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  • 1 decade ago

    it's not as lucrative a business as it used to be, but now is the time to buy; b/c it's a buyers market right now. Many 700k condos in Pensacola are now going for about 500k. At best you will just break even on leasing. The real invest is property appreciation.

    Co-worker and i were just having this conversation about florida property awhile ago.

    Orlando is probably good b/c you will get more year round business, although there is less demand during peak season, than say panama city, destin, or pensacola.

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  • 1 decade ago

    Be aware of Florida investments, lately there have been allot of people cashing out of Florida real estate and no one has a good reason for explaining it (I think people are in fear of the coming hurricane season) as far as maintenance fees go they can be a nightmare, in my experience owning a condo in Hawaii, the maintenance fees doubled in four years time from two hundred per month to four hundred and seem to keep increasing yearly (there is nothing in any law book that can stop them from increasing indefinitely eventually exceeding your mortgage payment ) so be aware of that, the only thing you can do to check maintenance fees is see what the current reserve is for emergency repairs and find out what repairs are scheduled in the near future and if the reserve is available for those repairs if more will be needed, and the reserve isn't available, your fees will go up, as far as management of rental goes that is hit or miss and depends on the particular resort or association, but in most cases its a gamble especially in the current failing economy so don't depend on your rent paying the mortgage it is very possible that you may not be able to rent at all or no where near your mortgage rate (as in my case in Hawaii I can only rent for twelve hundred per month and my mortgage is twenty four hundred (maintenance fees being four hundred of that total) and even asking twelve hundred per month my condo has been empty for the past year, anyway I hope this helps ...good luck to you.....

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  • 1 decade ago

    Florida is a lovely place to own property! My whole family lives there and I love visiting with hopes to buy later. You should just google any number of realtors in the area and email, talk, etc. to get a feel for them.

    Source(s): Cold Illinois resident
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  • Anonymous
    1 decade ago

    DONT! Florida is horrible!!! its has the 2nd or 3rd highest forclosure rate in the country... do Georgia or South Carolina!!! SC has fantastic tourism on the coast and prices right now are great!

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  • 1 decade ago

    My advice would be--DON'T. Rental real estate is a tough business without the extra conditions you want to place on it which I would say put it in the almost impossible category.

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  • 1 decade ago

    i heard Florida taxes are high. and Florida is also becoming pretty populated. its really your choice though. there is also hurricane and tropical storm problems to consider. i would like to have a place in Florida because its beautiful there. but i wouldn't want to have the worry of my place being destroyed by a storm.

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  • 1 decade ago

    Hi there,

    This site might help you with your Orlando investment dilemma. It will also give you great ideas for other property investment opportunities

    http://www.aplaceinthesunlive.com/property-investm...

    Thanks

    Swede

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