KNOW YOUR BUDGET
- Know your budget and the rate of return you're targeting
- Define your timeframe for holding the property
- Higher budget = higher gross rent needed to justify investment
- Focus on communities with a strong track record of annual appreciation
DECIDE IF THE PROPERTY WILL BE:
- Annual Rental
- Vacation Rental
- Seasonal Rental
RENTAL TYPE DETERMINES FURNISHING NEEDS:
- Annual = Unfurnished
- Seasonal/Vacation = Furnished
CHOOSE YOUR PROPERTY MANAGEMENT STYLE
- Hands on Management
- Professional property management (full service vs rental placement only)
RESEARCH COMMUNITIES
- Research communities with leased rentals in past 6 months
- Avoid areas with high rental inventory
ANALYZE
- Property Management Fees
- HOA Fees
- Property Taxes
- Insurance
- Potential Condo Assessments
CALCULATE YOUR NET INCOME RETURN
- Gross rent - expenses (excluding mortgage) = annual income return
FOR SHORT TERM RENTALS FACTOR IN A FURNISHING BUDGET
UNDERSTAND THE TWO KEY RETURNS
- Income Return
- Appreciation Return
- Total Return=Income +Appreciation
ALIGN YOUR INVESTMENTS WITH YOUR GOALS
SOME INVESTORS PRIORITIZE CASH FLOW WHILE OTHERS PRIORITIZE CASH FLOW & APPRECIATION
We've handled several 100's of investment properties and if you're curious about more information and looking for properties in our area please reach out!
Matt & Jenny Cannon
Coldwell Banker