INCOME PRODUCING PROPERTY INVESTMENT INFORMATION
property types on the west coast of florida
Residential rental property may be a condominium, condo-tel, villa, townhome, duplex, or single-family home. Income potential depends on various factors and can be profitable and worthwhile if evaluated and analyzed carefully. While they are capital-intensive, cash flow dependent, and have low levels of liquidity, they also tend to be more stable, have tax benefits, and are more apt to hedge against inflation versus equity markets.
identifying & qualifying investment property
CASH ON CASH RETURN METRIC
The best method in determining the performance of a real estate investment property is using the CASH ON CASH RETURN metric. ROI's are used to assess equity and appreciation, whereas this metric measures profitability and how much you will earn back every year towards your initial out-of-pocket investment. It is also a useful tool when comparing properties you are considering or when evaluating the long-term potential of all your portfolio properties.
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Call me if you would like additional information on investment properties currently for sale or strategies to maximize the sale of your investment property.
rental income
Rent Rate variances
Rent Rate variances
Rent Rate variances
- Rent prices vary depending on the time of the year, location, and property/town lease restrictions.
- During season properties are often rented for a three to four-month period or on a month-to-month basis.
- Many properties, especially condos and villas have association dues, rental and pet restrictions which can affect rental income.
- Recent factors that have influenced rental rates include COVID, Red Tide, and Hurricanes.
in-season REntals
Rent Rate variances
Rent Rate variances
- In-season for this area refers to the time northerners, "snowbirds", come to Florida to escape the cold.
- Typically they arrive shortly after the new year and leave (depending on if they lease or own) in April or when their hometown is no longer cold or getting snow.
beaches - vacation rentals
Season vs. non-season rate adjustments
Season vs. non-season rate adjustments
Locations such as Siesta Key, Holmes Beach, Longboat Key, Englewood, Anna Marie Island, and the other barrier islands or keys, attract nightly and weekly vacationers all during the year. Investment properties that cater to them are "condo-tels" and can generate a lot of income.
Season vs. non-season rate adjustments
Season vs. non-season rate adjustments
Season vs. non-season rate adjustments
SEASON - JAN, FEB, MAR
10% OFF DEC & APRIL
20% OFF NOV & MAY
50% OFF JUNE - OCT
Annuals typically are 70% of season rates.
**Please note that this year we have seen less of a discount due to the high demand.
Condo-tel Financing
Condo-tels are condos that rent daily and cannot be financed through Freddie Mac or Fannie Mae. Financing for this type of property is a Real Estate Investment loan or sometimes called a Portfolio loan. This type of mortgage allows you to borrow up to 70% and is exempt from restrictions due to proceeds of the loan being used primarily for a business.
potential rental property expenses
Possible association fees
Possible association fees
Possible association fees
- Homeowners Association (HOA)
- Condo Association
- Clubhouse Add'l Fees
- Golf Membership or Add'l Fees
- Boat Dock, Ramp, Storage Access
- Amenities with Add'l Fees
- Assessments
property management
Possible association fees
Possible association fees
- In-House Management Fee
- VRBO/AIRBNB Fee
- Repairs/Maintenance
- Leasing Fee
- Yard
- Cleaning
insurance options
Possible association fees
insurance options
- Landlord Policy
- Liability Coverage
- Flood Insurance
- Personal Property Coverage (if you have personal items at rental)
- Renters Insurance (lease condition)
florida taxes
MAINTENANCE CHECK LIST
insurance options
Property Taxes
- Tourist Development Tax (6%)
- Sales & Use Tax (7%)
irs deductions
MAINTENANCE CHECK LIST
MAINTENANCE CHECK LIST
- During the filing year, rental property repairs can be deducted from its taxable income whereas, improvements cannot be deducted right away.
MAINTENANCE CHECK LIST
MAINTENANCE CHECK LIST
MAINTENANCE CHECK LIST
- Walls and doorways
- Locks and door handles
- Carpets and flooring
- Switches and light fixtures
- Windows, blinds, and curtains
- HVAC, Appliances
- Sinks and plumbing
- Roof, gutters, drains, and fencing
- Smoke and carbon monoxide alarms
- Attics and crawl spaces
COMMON RENTAL REPAIRS
Maintenance $ / home age
COMMON RENTAL REPAIRS
- Malfunctioning appliances
- Water leaks, mold, and damage
- No hot water/water heater problems
- Bugs and pests: infestation
- Garbage disposal
- Running or clogged toilet
PROPERTY CARE & UTLITIES
Maintenance $ / home age
COMMON RENTAL REPAIRS
- Water
- Electric
- Cable
- Pool
- Yard
- Cleaning
Maintenance $ / home age
Maintenance $ / home age
Maintenance $ / home age
Age Newly Updated Some Updating
0-10 5% 10%
10-50 10% 15%
50+ 15% 20%
Age Average Condition
0-10 15%
10-50 20%
50+ 25%
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