One of the most popular questions posed by investors is; what are the best type of properties to buy? Unfortunately, there is not one standard answer for that because it really depends on the financial goals of the investor. Some properties lend themselves to a higher cash flow. Whereas the cash flow on other properties might not be as good but they offer a greater chance of capital appreciation.
A single family home in a non deed restricted community is an example of a higher cash flow property. Properties located on non-deed restricted communities do not have the same mandatory fees associated with condo or homeowner associations and other amenity rich communities. This will in turn enable the homeowner to save on those monthly fees. With most of the rent going into the owner’s pocket to boost cash flow.
Sacrificing monthly cash flow with the prospect of a pot of gold at the end is another option. Some investors will consider a property with an HOA, such as a condo or townhome. These properties are typically built in more desirable areas and deemed more prestigious. You are likely to achieve greater appreciation potential in this type of property over a 5-15-year period.
The downside to these types of properties are the fees that are associated with them. Also, the investor should bear in mind that the fees include reserves that look after pre-planned maintenance. Thus, the investor does not have to budget for items such as grounds maintenance, replacement roofs or exterior painting. The home owners association budgets these things on your behalf.
So, unfortunately there is not one single answer to this question. There are lots of different scenarios out there. Speaking to a property manager who understands investments and explaining what your goals are, will put you in a far better position to make the right decision when you buy your next investment property. If you are considering investing in the area and would like to speak more about investments, please reach out to us and we’d be happy to help.
Hungry for more? Check out the two blogs below or visit our Owner Resource Center here to find answers to all of your questions. Or give us a call at (941) 782-1559, we’d be happy to answer any questions you may have.