Are you considering buying an investment property in Kissimmee, Fl? If so, there’s no time like the present!
It’s no secret that rental investments can be tremendously profitable. Many of the current world’s richest have made their money through real estate investments. This is because when it’s done well, a rental investment can help you create a passive income and grow your personal wealth long-term.
That’s being said, while real estate investments can be wealth creators, they aren’t a road to instant riches. A bad investment can be costly and a good one still requires a lot of time and effort to be fruitful. That’s why it pays to work with an expert to help you navigate the world of real estate investing.
In this article, the trusted team at RentSmartUSA will go into the basics of buying an investment property in Kissimmee. Follow our recommendations to maximize the potential return on your real estate investment.
What is the Kissimmee Real Estate Market Like?
There are several reasons why this is the perfect time to invest in the Kissimmee real estate market.
For one, median property prices have fallen below the national median. According to Realtor.com, the current price per square foot is $195. These lower-than-average costs can enable you to find good deals.
What’s more, home values are on an upward trend. According to Zillow, home values have shot up by a whopping 11.6% in the past year alone and the trend is expected to continue. Therefore, if you invest now, there’s the potential that you’ll see the value of your property increase.
Another reason to invest in the Kissimmee real estate market is rising rents. Compared to one year ago, rent prices are now estimated to be 11.1% higher. Best of all, the city of Kissimmee has a huge renter population with an estimated 58.9% of residents living in rental housing.
So, investing here could allow you to work with a large pool of prospective tenants while seeing strong returns.
Top Tips for Real Estate Investments in Kissimmee
Choose the Right Location
The right location is the first step to being successful in real estate. The right location should have a large and/ or growing population, development opportunity, and all the basic amenities that renters look for.
The following are features of a good investment location:
- Good walkability
- Access to restaurants and shopping areas
- Access to public transportation
- Family-friendly
- Access to medical care
- Access to leisure destinations and parks
- Great schools
- Low crime rate
These features result in a higher demand for housing.
Know Your Costs
Are you new to the real estate investment business? If you are, you’ll quickly need to learn what expenses to expect to avoid future surprises. When investing in real estate, there are more expenses than just the cost of the property and realtor commissions.
One expense people forget to factor in is the cost of repairs. Pests may infest your property, the foundation may be cracked, and electrical problems may arise. Florida landlords have a responsibility to ensure their properties are habitable. As such, you’ll need to have such repairs done as quickly as possible before you can start being tenants and generating income.
Other expenses to keep in mind include closing costs, insurance, and utility costs. If you’re a first-time landlord it may be in your best interest to hire a professional property management company. Knowing all the costs upfront will help you make a wiser investment and will end up saving you money in the long run.
Understand Your Responsibilities as a Landlord
Landlords have many responsibilities when it comes to managing their rental properties. You’re responsible for doing things like:
- Providing a clean environment
- Maintaining a safe environment
- Quickly responding to tenant repair requests
- Properly storing a tenant’s security deposit
- Keeping all vital services, such as electricity, plumbing, and heat, in good working order
Know Your Legal Obligations
Another key responsibility you have as a rental property owner is knowing the Florida landlord-tenant laws and any other rental laws. From the Fair Housing Act and eviction rules to lease requirements and security deposits, you’ll need to observe federal, state, and local laws at all times.
Avoid Buying a Fixer-Upper
A fixer-upper can be a great investment. However, there is a lot to think about when deciding to purchase one. That’s because it can easily turn out to be very costly if you make the wrong move.
You should only consider a fixer-upper if you have home improvement skills yourself or know a good contractor that can do a good job quickly, property, and in a cost-effective manner. Otherwise, it’s best to stick with a rent-ready home to avoid the upgrade and maintenance costs.
A rent-ready home is just that, ready for tenants the moment you buy it. Although these homes are generally more costly than a fixer-upper, they ensure a quick turn-around time. You can start the marketing process as soon as you close on it.
This means you can land a tenant and generate passive income sooner than you would with a unit that requires more work.
Invest in Landlord Insurance
Your homeowner’s insurance policy won’t be enough to cover your new investment. A typical landlord insurance plan will cover things like lost rental income, property damage, and offer protection against common liabilities.
It’s also recommended that you ask your tenants to have renters insurance as well. A renters insurance plan will help cover their personal belongings from common perils.
Calculate Your Margins
If you underestimate how long it will take you to find a tenant you could lose money. That’s why, when calculating your returns and potential income, you want to use conservative figures. The goal here is to ensure that you have a safety net should any issues arise
Hire a Property Management Company
A trusted property management company can easily become one of your greatest assets. You want one who provides a comprehensive suite of services to help you in all management aspects, from marketing and tenant screening to collecting rent and maintaining the property.
In a Nutshell: Real Estate Investing in Kissimmee, FL
Kissimmee real estate market is hot right now. Property prices are appreciating, rents are rising, and the renter population is substantial. So, if you are thinking of investing there, the time is now!
RentSmartUSA has been operating in Orlando and the surrounding areas for over 10 years. We understand the dynamics of the local real estate market and can help you make the best real estate decisions. Get in touch today to learn more about our services!