
Investment Property Making paradise work for you

When looking at investment property, there are two questions that separate the best investments from the rest: "what is the cash flow" and "what is the appreciation potential". After owning vacation property for twenty years, there are several considerations I have found to be important. I have listed below some to think about and I can help you find the answers to many of these when we start looking at available properties.

Cash flow

Cash flow is the difference between income and expenses and determines how much you make each year (positive cash flow) or how much it will cost to hold the property (negative cash flow).

Income considerations:

How much rental income can the property generate? Rental income is the starting point but is not all of your effective income.
What tax deductions can I take? You may be able to take a tax deduction if the property shows a loss after including depreciation. A tax accountant is needed to fully answer this but I can help you collect the information needed to ask the question.

Expense considerations include:

What are the commissions on rental income?
What does it cost for cleaning between guests?
What does the mortgage cost?
What are the property taxes?
What do utilities costs?
Are there other management fees?
What are the condo or other association fees?
What will advertising cost if you find your own guests?
What should I budget for maintenance and repairs?
What insurance do I need?

Appreciation

The Southwest Florida real estate market has shown strong growth for many years. The increase in value can make even properties with negative cash flow into excellent investments.

What have comparable properties been selling for?
How much have the prices for this type of property increased over the last few years?

Getting Started

Click this link to send me a message and I will help you find an investment in paradise peggy@sanibelsand.com

Find out about other ways we can help by visiting:

Seahorse cottages
on Sanibel
Rainbow's End
waterfront home on Matlacha