What is a good real estate investment property in Cape Coral Florida?
There are quite a few ways to analyze Cape Coral real estate investment properties to find the ones that are good for your investment strategy. Are you a buy and hold investor? This strategy will require a positive cash flow to determine if the investment is indeed worthwhile. Are you looking for properties that will appreciate? This strategy is a riskier because no one has a crystal ball. You would basically be speculating that a certain neighborhood will appreciate due to economic factors that drive job growth, increased population growth, and other factors. In this blog I will be focusing on cash flow to determine what is a good real estate investment property in Cape Coral Florida.
How do I find Cape Coral Investment property?
First I would like to share a few search links to help you find undervalued Cape Coral Fl houses for sale.
- Search for possible Cape Coral Investment properties
- Search for Cape Coral Foreclosures
- Search for Cape Coral Short Sales
- Contact Joshua Painter P.A. to have instant updates mailed to your email for undervalued Cape Coral Houses for Sale.
- Search for Cape Coral Duplexes for Sale
- Search for Cape Coral Triplexes for sale
- Search for Cape Coral Quadraplexes For Sale
- Text/Call 239-425-5255 for other geographical area searches
How to Determine if your Cape Coral Investment property generates positive cash flow.
Before you jump into your first deal, there is a lot of research that must be done during the process of finding a good Cape Coral real estate investment property. I can guarantee that many first time investors do not weigh all the expenses before analyzing their cash flow. Thus leaving them in a situation of negative cash flow.
What do I need to do to start investing in Cape Coral Investment Properties?
The first thing that needs to be looked at is your personal finances that you have set aside for your real estate investment. 20% of the purchase price should be put down on the sale to eliminate Private Mortgage Insurance fees. Call/Text Joshua Painter P.A. 239-425-5255 to help you set a budget and form a timeline to save up 20% of the purchase price. You can use this mortgage calculator to determine how much the principal and interest will be of your purchase.
Next you will need a local Realtor to help you find the average rental incomes in the surrounding areas. This might be the most important step! You will want to be as close as possible with your market research. Look to see what amenities your property has compared to the ones you are comparing to. I would recommend figuring 50-100.00 less than the average rental income for similar Cape Coral investment houses to be conservative. You will want to know everything about the home you buy. for example...
- How much are the average security deposits in the area
- How much are the average pet deposits
- how much are others paying for utility fees
- nearby amenities
How do I figure expenses and calculate them accordingly?
You should be able to calculate the expenses of a property to predict what your cash flow will be. Cash flow equals income minus expenses. I will list some expenses here that you can use to calculate your total expenses.
- Electric bill
- HOA fees
- repairs of major items (roof, appliances, kitchen, bathroom remodel, landscaping, AC systems, pool equipment replacement
- property management
- Vacancy rate
- flood insurance
- lawn care
- pool care
I personally would budget for repairs to major items monthly. For Example if your Roof has a 20 year life expectancy ,(10 years X 12 months = 120 months) 10 years old roof, find the total replacement cost( estimated at $5,000.00) divide it by 120 months. (5000.00 roof / 120 months = $42.00 a month expense).
This basic lesson is just the tip of the ice berg. You also can figure appreciation, ROI, Tax advantages, and more when you sell the property.
For More information about buying Cape Coral Investment Property Call/Text Joshua Painter P.A at 239-425-5255 or visit www.movingsouthwestflorida.com for your own personalized home search.