I am very close to submitting an offer on some properties in the VERY near future, but I would like to hear more from you who may already invest in the region what else to look for.
I found some possible homes that are:
- Not next to a water source (lake etc.)
- Not low elevation
- Not at the lower end of an elevation change (i.e "down the hill from...")
I have been to the area several times as of late and feel familiar enough to make a purchase, but, I cannot get a grasp on what I will become liable for once purchase is done. To be specific. I am an OOS investor. in California I will NOT reside in this house except for maybe the couple nights I stay in town setting up property management needs etc..
I am wondering what I need to look for with insurance, tax filings and other "Gee. I wish I knew that when..." type stuff.
The homes range in price from 250 to 350k. One, even new construction.
Thanks to you all.
Insurance will be at least 1200 / mo for a typical property. Check the historical taxes on bcpao.us, gives you a baseline of the assessed value. Two properties with equivalent market values could have wildly different taxes depending on their ownership history and where they were purchased at, as the tax assessor's assessed value does not necessarily correlate exactly with market value and also the property may have been bought above/below MV. Taxes will certainly go up due to the removal of any homestead exemptions and potential re-assessment.
Good to pay attention to flood zones and such as that can be a huge drag on insurance costs.
The one thing that stands out in your post is your price range. It is very difficult to cash flow here on a property that will be 250-350k purchase price. Rental rates just don't get high enough. Definitely not after outsourcing property management.
I agree with the above post.
I would meet with your potential property manager and as what rents they are currently getting in the neighborhoods you are interested in.
Have you picked a city or town yet or are you looking at the county as a whole? Also are you doing STR? If so you may be able to get closer to cash flowing at those prices.
I could help point you in the right direction in Brevard County. I have helped several BP members find the right properties here (I even have one guy closing on 2 properties currently - one tomorrow and one in a couple of days).
@Sumner Rabin I’m under contract on my first investment property in West Melbourne now!