Rehab and Investment Properties
Investing in bricks and mortar is always a shrewd move, yet discovering properties fit for rehabilitation or as an investment can be a difficult, often arduous, task. Searching for such an opportunity is best done in conjunction with a professional expert. No-one in South Florida is better informed about potential rehab and investment properties than leading realtor, Tammy Hernandez.
What Is An Investment Property?
Investment properties and rehab properties, while purchased for a similar reason (in order to make a profit, either now or in the future) are quite different. The definition of an investment property is real estate that’s purchased to earn rental income, capital appreciation, or both. Many people begin with a single purchase, and then increase the number of properties owned to create what often ends up being an impressive portfolio. Contrary to popular belief, it’s not necessary to have a large initial stake to begin investing in property—many begin with a modest deposit, slowly building up to increase the number of properties owned.
South Florida is an excellent location for real estate investments, with cities offering high-yield rental markets thanks to the region’s buoyant economy. The latest report from the U.S. Conference of Mayors ranks it as one of the 50 largest in the world and the 12th largest in the country. At $340 billion, South Florida’s current economy (2020) comes in just behind Hong Kong at $241 billion and in front of Ireland at $333 billion.
The latest figures regarding home equity (from ATTOM Data Solutions) ranks the region as 12th in the United States, and that 24.6% of all properties with a mortgage are considered to be “equity rich”. The GDP of Florida reached $1 trillion in 2018, ahead of entire countries, including Turkey, The Netherlands, Saudi Arabia, and Switzerland.
Investment properties in South Florida are therefore highly lucrative, with rental yields of up to 12% and cities such as Miami being ranked as 12th in the US by PwC for overall real estate investing prospects.
What Is A Rehab Property?
A rehab property is real estate that requires renovation before selling it for a profit. The level of work necessary ranges from simple tasks such as updating bathrooms, kitchens, and interior décor, through to major structural works. Naturally, the time it will take to get the property to a saleable state will depend on the extent of works an individual property requires.
“Rehabbing”, as it’s often termed, isn’t necessarily undertaken by those with extensive real estate knowledge and experience. The extent of success from such a venture is highly dependent on the preparation stage, having a full understanding of the renovations necessary, and the ability to hire reliable contractors to carry out quality work in the shortest amount of time. This, naturally, is dependent on finding suitable rehab property for sale in the first place. Many begin their rehabbing career with the purchase of real estate that only requires minor renovations before moving onto more ambitious projects.
This is where partnering with realtor, Tammy Hernandez, puts you at a major advantage. As one of South Florida’s leading real estate agents, Ms. Hernandez, is perfectly placed to advise when rehab properties hit the market, putting you in a truly advantageous position of being one of the first to hear about potential purchases.
Buying An Investment Property
Buying an investment property is possible with only a small percentage as a deposit, using the rental income to cover the mortgage and/or bring in a monthly yield. Tammy Hernandez has intimate knowledge of the South Florida real estate market and factors that affect or are likely to have an impact on the rental scene.
Aspects such as increasing restrictions on the Airbnb rental market, tourist market growth, and state-wide employment all have consequences on the real estate investment industry. Tammy’s expertise not simply as a realtor, but the nuances of the market that affects each county and city mean she’s ideally placed to guide her clients towards the most appropriate properties for personal investment strategies.