So you want to buy a rental property in Land o Lakes and Wesley Chapel, FL? Good!
Real estate has historically been one of the best long-term
investments and the best hedge against inflation. Now is the time to invest
because the values of properties in Land o Lakes and Wesley Chapel have gone up in the last few years sending a clear indication of future appreciation.
Yearly gross
income on rental property when you put down 25%, minimum could be as high as 50% of the original investment paying you back in 2 years. Investing is always tricky, so here are a few
recommendations to consider before buying a rental property.
1) Buy in a desirable area of town.
2) Buy in a neighborhood that will
keep its value. Neighborhoods with CDD
fees will keep their value longer than those with a HOA only or no fees at all,
because the CDD will see that the neighborhood and amenities are maintained
well. CDD fees are collected with the
taxes, so even if the neighboring homes go into foreclosure there will still be
plenty of money for the maintenance.
Neighborhoods with a strong HOA are also good, if they have a track
record of enforcing the deed restrictions, and if they have high reserves.
3)
CDD and HOA fees, as well as taxes and insurance
are tax deductible on rental property.
Some other deductions are property management, improvements, repairs,
and depreciation. Pretty much everything you spend
on rental property is tax deductible.
Trips down here to maintain your property between tenants are tax deductible,.
4)
Properties with more amenities may command
higher rent. Find the market for rent
prices in several neighborhoods you are interested in.
5)
Properties with included property maintenance are
desirable, because that is one less thing you have to plan for.
7)
401k money can be invested into rental
property. Consult your tax professional
for guidance.
8)
Use a Realtor who knows the area and understands investment properties... and, very important... owns investment properties. Also use a good property manager to manage your rental
properties. Good property managers are well worth their
fees, because taking care of problems with rental properties is their
expertise. Dealing with tenants, finding
vendors for repairs, finding new tenants, background checks, holding deposits,
taking calls on weekends and holidays for you from tenants, and much more. They don’t just
collect the rent. You need them.
If you
would like more information about purchasing rental property in Land o Lakes or Wesley Chapel, Text, Call or Email me directly at 813-714-9737 or
Dee@DeeSmith.com
for Testimonials visit www.DeeSmithSellsHomes.com
