Why you should buy a rental property in Florida?
Feb 6, 2022
Hey! It's time to buy vacation rental properties. Let's talk about numbers!
And we’ll do it with figures and without thinking so much about the matter…We know that you need to make the best possible use of your money, and we also know that the best possible use is the one that multiplies it, that is definitive! That’s why today we want to explain to you why you should buy a rental property in Florida as an excellent investment idea, which will help you optimize your resources and achieve your goal.The real estate market has the particularity of offering you different ways to take advantage of your money, so when buying a property in the United States, you are certainly investing in assets that not only will bring extra money to your pocket, but could also end up paying themselves.
But how is this possible?For example, if we consider a property like CARLOTA, from our E-homes project in Port Charlotte, FL., which has a value of $325,000, you would only need 15% of the total value of the house, to start your purchase process. This means that with only $48,750 you could already consider yourself the owner of your first house.But let’s go in parts, if you meet the standard requirements established by banks that grant mortgage loans, and you have $48,750 in your hands, it is feasible that a mortgage will be approved, in which you would have to pay monthly installments of approximately $1,400 until you meet your commitment. Some will say: “but I couldn’t pay monthly fees of $1,400″…It doesn’t matter, it’s possible that the figure that you give as a down payment, is the only one that you have to pay out of your own pocket, and even so, end up becoming the absolute owner of the property.This is where it gets interesting, not because the bank is going to give you the rest or to forget your commitment just because you are a nice person, but because there is a way for your house to pay its own fees. We are talking about leasing on a fixed term, seasonally, and during vacation periods.
Since we said from the beginning that we are talking about business, we assume that you are not going to see your property as the space in which you will live, but as an asset that you will get the most out of. So if you consider putting a rental house in Florida like CARLOTA on a fixed-term lease, you can get up to $1,800 a month from your tenant.If you allocated $1,400 to pay your credit, you would still have $400 free, which you could keep for various expenses, or very intelligently allocate for payment of interest or capital payment of your credit, which would progressively reduce the time of the same, or the amount of your monthly installments as you choose.Now, if you decide to use your property for “long term rental” or “seasonal rent”, for example in “summer” or “spring break”, you could get up to $4,000 for each month, you would allocate $1,400 to pay your credit and you would have $2,600 leftover that you could use to pay off your debt to pay it off sooner. We could say that only in the summer, you could get the returns of a whole year of fixed income.The rest of the year in low seasons like winter, you could get up to $2,000 a month or $200 a day, if you decide to register your property on Airbnb for “short term rental” or “vacation rental”, for the early birds, those who desperately seek to escape regardless of the winter weather of their cities of origin.To obtain the same information, based on the data of a property like ISABELLA, we invite you to use our mortgage calculator, and to read our blog HOW TO SAVE MONEY ON THE PURCHASE OF YOUR NEW HOME?As you can see, the business is viable, profitable, and hassle-free! At Efficient Developments Group, we are prepared to accompany you in every step of the process, giving you personalized advice with which we will make your life much easier.