There's a lot of uncertainty concerning the real estate market right now across the nation, and especially in Florida. This leads to some property owners and investors experiencing significant 'Analysis Paralysis' when it comes to making moves for their portfolio.
The pandemic's effect has left the real estate market volatile in some aspects and dependent on whether lockdown conditions are present or not. Within a lockdown, the markets clamped down tight and essentially went through a 'freeze' period that created a ballooning property value bubble once purchasing could resume.
With speculation on the rise, we want to provide some information as a Gulf Coast property management expert that might help ease some of your tension when deciding to make a move.
Where Is the Market Headed in 2021?
This is primarily what's causing prospective rental property owners to get cold feet: 'If I buy a property now, will I lose out on appreciation potential if the market crashes during another COVID-19 surge?'
The pandemic has caused a lot of problems—but decreasing property values isn't one of them. Pushing into 2021, most of the market is expected to continue to appreciate and experience rising property values—potentially leading to some immediate equity in real estate investments you make now.
In Florida, especially, the population is only expected to continue growing in the wake of the pandemic—meaning there will be a demand on the part of both future homeowners and renters for housing. As a buy-and-hold investor, appreciation is always the cherry on top when selecting another property for your portfolio—but it isn't the only factor that matters.
Keeping your eyes on the prize as far as what renters want in a rental property has always been a driving force behind any successful acquisition—and that's no less true now as we move closer to the new year. If you've already done some research and have a roster of potential investment properties you're ready to add to your portfolio, run them by us first here at Gulf Coast Property Management. We'll be able to put our expert eyes on the numbers and provide some insight.
It's also worth noting that a potential wave of foreclosures is on the horizon, depending on what kind of protections the government decides to push through as we move into the first quarter of 2021. If you're planning on making some moves, the second quarter of the year is likely where you'll start seeing some serious opportunities emerge if there are going to be any. This will also likely be when any impact on the value of single-family homes and multi-family units nationwide will really start to ramp up.
This makes it crucial for investors to start forging partnerships now that will pay out dividends moving into 2021.
The Right Partnerships Yield Excellent Rental Property Opportunities
If you've been relying on real estate signs posted at your local intersection or flyers boasting hot rental property potential at a nearby Starbucks, you're already putting your long-term wealth at risk. Building a rock-solid portfolio of investment properties starts with the right connections and partnerships.
- Some of the earliest working relationships you should be prioritizing are with your fellow investors, various investing groups, and a professional, full-service property management team.
- For all of the above, it's crucial to thoroughly vet the track record of any group or property management company you ally yourself with. You need to know that they have a history of managing successful investments before taking any advice they have to offer at face value.
- Finding the right investing groups can help fuel your portfolio with excellent property picks and insights into future purchases, as well as show you where the opportunities are currently located in the Sarasota-Manatee-Charlotte County area.
- The right property management services allow you to add these excellent rental homes to your portfolio seamlessly and manage the day-to-day upkeep of responding to maintenance requests, handling rent collection, tenant screening, and more.
Once you've invested in the right partnerships, you'll find it that much easier to find (and acquire) the right investment properties in the Gulf Coast area.
That Next Property Might Just Be a Turnkey Property!
Turnkey rental homes provide serious value for investors. These properties come ready-made for renters—and may even already have a renter living there when property owners make the purchase!
Unless you know for sure that the renter in question has undergone a thorough tenant screening process under the watchful care of Gulf Coast Property Management, we don't always recommend starting with a resident already in residence. You may end up purchasing an excellent rental property that happens to have an expensive problem renter that has now been offloaded onto you by the previous owner.
However, turnkey properties still remain an ideal pick because the renovations for these rental homes have been made with the desires of the Gulf Coast rental market in mind. These kinds of real estate investments can often be found by getting in touch with your trusted group of fellow investors or by working closely with full-service property management to spot picks before they hit mainstream (and often inaccurate) venues like Zillow.
If you've been relying on Zillow to try and scoop up rental properties, you need to get out of the weeds.
Trust the Right Property Management Services to Make Great Plays
Beyond what the right property management team can do for you at the daily level of successful rental property care, they bring additional insight to the table in the form of the right research, resources, and years of experience.
We invite you to take advantage of our experience for free—starting right now! Just download your copy of our real estate investing guide to access our tips and techniques for growing your portfolio the smart way in the Sarasota, Manatee, and Charlotte County area!