Deals in Naples FL

[Will Zena]

Hi, Are there deals still to be had in Naples FL area? It seems like sky high HOA fees are killing the annual rental market. Contractors seem to be focused on big building projects and that seems to be driving up their rates. Any wholesalers/investors in the area able to provide some insight on how I should approach this area or maybe I should focus on Fort Myers area instead?

[Seth Nadreau]

I love looking at rentals in Bonita Springs and Naples and it IS still possible to find some good cash-flowing properties. In my experience, the best properties are those that need some work, but can be rehabbed in to move-in ready annual rentals as the cost to buy and fix is usually lower than the cost to buy a property already fixed up.

As for HOAs, it's all cash flow. If the cash flow supports the HOAs and the HOA allows for annual rentals, I'd go for it. Sometimes (think golf or lifestyle communities) the HOAs can bring in better cash flow. Of course, the cost to carry as vacant can be much higher too.

If you're seasoned in real estate investing and have either a management company or the time to manage the properties yourself, HOAs can be a good way to go. If you don't have the time and don't want the overhead of a manager, I'd stick with small homes outside communities (good returns in Bonita and in areas of Naples (I love the Estey Ave area).

Happy hunting!