Property Management Blog

Investing in Rental Properties | Tips for Boca Raton Real Estate

System - Friday, May 1, 2020

Investing in Rental Properties | Tips for Boca Raton Real Estate - Article Banner

Investing in rental properties is an excellent way to build wealth and develop a successful real estate portfolio, especially in Florida. Boca Raton offers a lot of opportunities, whether you’re buying your first rental home or growing your real estate business.

We’re providing some tips today on how to invest in real estate. Rental properties are outstanding and profitable investments, but they also come with risk, especially if you’re not sure what you’re doing and you don’t know where to go for help. Surround yourself with experts in the Boca Raton rental market, and you’ll have a much better investment experience.

Buying your First Investment Property

If you’re investing in a rental property for the first time, congratulations. Before you sign on the dotted line and close the deal, make sure you’ve taken these important steps:

  • You’ve done the math to make sure you’ll earn enough in rent to cover your basic expenses and create a good potential for cash flow.
  • You’re buying a home that makes sense for the tenants you’re hoping to attract. New investors often forget they’re not going to be living in the home themselves; it doesn’t have to meet all your personal needs. It must make sense as an investment.
  • Hire professionals to help you make smart choices. A real estate agent can negotiate a great deal, a property manager can tell you how much work you’ll need to do to attract a great tenant and what kind of rent you can expect. You’ll also need a good insurance agent, CPA, and a list of vendors who can help with cleaning, landscaping, and repairs.

Focus on move-in ready rental homes. It’s easy to be dazzled by super-low prices, but your goal is to get a tenant placed quickly so you can start earning income. Don’t delay the leasing process with months of work.

Where to Invest in Boca Raton Rental Homes

There are a lot of diverse neighborhoods in Boca Raton, and a number of them make for strong rental possibilities. You can buy a condo close to the beach or a single-family home in an established neighborhood close to great schools. We’d love to discuss the specific communities and the pros and cons to each. While you’re looking, make sure you’re choosing a home that aligns with your investment goals. Look for growing neighborhoods with a strong sense of community.

What to Look for in a Boca Raton Investment Property

There’s no need to get emotionally involved in your potential investment property. This is a business, and you need to treat it as such. The ideal investment property will be in good condition. If anything, you’ll need to make some cosmetic changes and upgrades, but it should be structurally sound and functional. Look for a good neighborhood. A lot of retirees are coming to Boca Raton to rent a home, and they’ll want to be close to golf and restaurants and shopping. Make sure the property you choose will appeal to great tenants and earn as much rent as possible. You also want it to appreciate in value over the next five, 10, or 20 years.

Buying a Rental Property with No Money Down

Investing in real estateThere’s a common misconception among new and potential investors that you need to be rich already in order to invest in real estate. That’s not true at all. You don’t even need to save up six figures for a down payment. We know investors who have purchased their first rental property with no money down at all. If you’re willing to be creative with financing opportunities, there’s always a way to invest.

We’d love to tell you more about how to invest and where to invest in Boca Raton. Contact our team at Domu Properties today.