As a landlord here in Brevard County Florida, over the years I have certainly had my fair share of ups and downs. I have made many mistakes, however I quickly rebound, and am careful not to make those same mistakes in the future.
Often times we have investors and/or landlords contact our office to discuss the investment real estate business. Word to the wise: don't jump in with both feet unless you know exactly what you're doing and have a well laid out plan.
Whether you're thinking of investing or you're already a landlord...
Look for smaller properties, in good areas to invest in.
Typically, smaller houses rent for more money per square foot than larger homes.
There is a more abundant supply of tenants available for smaller houses.
The rent is usually more affordable, thus tenants have a tendency to stay longer in a small house, versus a larger more expensive one.
The mortgage payment, taxes, and insurance typically cost less in smaller, well appointed homes.
Be careful, you don't want too small, if it puts you in a questionable area. Then, you just wind up dealing with tenants that are sometimes difficult to deal with.
They typically sell for more money per square foot than larger houses.
The market value may not be affected as severely in a market downturn, as a bigger house's value.
Visit my website at www.SandyShoresMelbourne.com
*Please remember: I live and work here in Melbourne in South Brevard County Florida. I am speaking from my experiences here in our area. Some of the above information may not apply or be relevant to the area of the country in which you live.The above info are based on my personal experiences and some are my opinion. Please be sure to do your own research.
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Great post, Sandy. I own several rental properties and I also look for the smaller homes in a great neighborhood of larger houses. Seems to work well. I also buy based on the local school zone which helps put renters in my homes more quickly and at a better price for my investment.
Excellent post, Sandy. Your article spells out in lay terms the advantages of buying smaller investment properties. I do it that way, too, but primarily because IT COST ME LESS DOUGH UP FRONT! Thanks for sharing.
Good post we are long time investors however your information is good for any stage investor.
Hi Teresa, This stategey has worked well for me in the past. I agree with you on looking in a good school district - great point! Have a super day!
Hi Pat, You are so right -it does cost less money upfront - another great point! Thanks for the comment and take care!
Hi Don, I agree this can be applied to any investor (hopefully not one that already owns a bunch of big houses). I love to hear about others that are long time investors.
Hi Sandy ... All excellent points. You know, I notice in my area the smaller homes sell well even in this market. Have a nice day!
I can't believe anyone ever had tenants that were difficult to deal with, lol. I would add one more thing. If you want to know about your prospective tenant, check out where they live now, don't depend on landlord references only. The current landlord may just want to get rid of them.
Hi Marie, How are you today? Smaller houses will sell well in any market, as there will always be an abundant supply of buyers for them. They are perfect for first time homebuyers, who are out in big numbers today.
Fred, Oh no, I've never had a difficult tenant (yeah right!!!!!!!!!!!). EXCELLENT POINTS (You must have rentals of your own.) - I ask a tenant for their current address and ask them if I can come over and stick my head in to take a peek. The good prospects don't have any problem with this. The ones that do have a problem with it are the ones that I stay away from. I don't like to call for references. Landlords don't always tell the truth, and if they are a REALTOR they must be cautious on what they say so it doesn't come back to bite him. Many tenants that are being evicted don't pass along their current or correct landlord info to a prospective landlord. However, if I am evicting a tenant and I get a call for a reference on that person, it would be foolish of me to say that they were the worst tenant on the planet (unless I wanted to have them stuck in my house forever). As a REALTOR I don't disclose that info anyway.
Many excellent points on what type of property to buy that makes the most financial sense and return on you investment.
Hi Steve, Thanks for the comment. So often, investors jump in blindly, not knowing what to buy or which way to go. And many get bad information. I hate seeing that!