VENICE FL REAL ESTATE INVESTOR SERVICES
Investing in Venice FL real estate centers on location and future appreciation.
I had the winning bid on three homes with multiple offers, thanks to David's expertise.
Ron F., Sarasota
TYPE OF PROPERTY
If you are a cash buyer, a single family home is your best choice for pure cash flow. If you've heard about increasing flood insurance costs, the legislation that caused the threat of drastically higher premiums is no longer in effect. You are not required to carry flood insurance unless you are getting a mortgage. Condo fees are likely to increase because of insurance costs and governmental compliance burdens placed on condo associations.
Single family homes in good condition are more likely to attract a tenant than a condo, and are more likely to appreciate in price in the short term, based on historical trends in the Venice area. Even after you factor in expenses such as homeowner's insurance and lawn maintenance, the carrying costs for a condo versus a single family home slightly favor single family homes if you are a cash buyer.
If you are interested in a condo on the mainland, you can easily secure an annual tenant. Plan on an average monthly condo fee around $350, plus condo insurance and management fees around 10% of your gross monthly rent, as your major expenses. If you are interested in a condo to rent part time and use yourself, you are most likely going to be looking for a vacation condo on one of the barrier islands, such as Siesta Key or Longboat Key. As a rule, vacation condos pay for themselves if you are getting a mortgage, but are not the best choice for those investors looking to maximize cash flow.
THE CAP RATE?
Technically defined, the cap rate is Net Operating Income (NOI) divided by the current market value. It is most frequently used as a method to determine the current value of commercial real estate, where a comparable value analysis is more difficult, especially with multi-family dwellings or apartment buildings.
Cap rates are rarely used to determine values for residential real estate investments. If you are using a cap rate as an opportunity cost comparison to other types of investment, you can expect local cap rates between 6% and 7%.
WHAT TO LOOK FOR
If you're like many investors, you're looking for residential property in the Venice area.
Venice FL homes in key rental areas are usually 2 bedrooms and 2 baths. 3 bedrooms are not a requirement for most Venice prospective tenants. A 2 bedroom home that has had a garage conversion is also to be avoided.
I advise staying away from condos unless you plan on flipping. Most Venice condos do not allow tenants to have pets.
Concrete block homes with public water and sewer are your best bet for investing in Venice.
I offer a wide range of services to Venice FL real estate investors.
Custom searches and email updates
Expert market analysis
Video walk through
Full team of service partners from legal to inspections
Effective, custom marketing
Prominent links on high-ranking property pages on this website
Variable rate commission
Design and renovation advice for higher net and shorter market time