3 Tips When Purchasing an Investment Property in Coconut GroveJanuary 30, 2018
When considering purchasing an investment property in Coconut Grove there are two strategies to consider. An investment property can become a rental or it can be resold after investing in upgrades. Either option is viable given the neighborhood and the property choices but it can be difficult to decide which is the best opportunity for you given circumstances. These three tips, rental property, investing then reselling the property, and consulting with an expert give a good overview of what to consider and who to discuss your options with.
Tip #1: Purchasing a Coconut Grove property as a rental opportunity to generate passive income
An investment property in Coconut Grove would work well as a rental opportunity. The neighborhood has a great draw for an elevated lifestyle and there is a market for renters who want to try out the area before they decide to buy and make Coconut Grove their more permanent home. When buying a property to then rent it’s important to consider your location, your ideal renter, and what your timeline would be in terms of a short term or long term lease.
A rental is a good investment property in Coconut Grove, but only if you consider the costs from the initial property purchase to the taxes, utilities, to any upgrades or work that must be done to the property before you put it on the rental market. Rental options are a great place for an investment property but there is a lot of work and organization up front before the property starts to have a profitable return.
Tip #2: Investing in a Coconut Grove Property to Resell
Another option when considering an investment property in Coconut Grove is buying a property that you can resell. These properties can be sold quickly after a few upgrades or sold later when there’s a higher demand or more in-depth upgrades have been completed. This is a viable option for those looking for something they can work with and sell off, whereas with a rental you will own the property more long-term and interact with residents.
An investment property that you’ll resell is a good option if you are looking for a project to put work into that will increase the value. You should consider the purchase price, the cost of upgrades, and the cost of upkeep until you make the sale down the line.
Tip #3: Consult an Expert Before Purchasing an Investment Property in Coconut Grove
No matter which investment property option you’re considering, it’s important to consult with an expert in Coconut Grove Real Estate who knows the market trends in Coconut Grove. The Elmir Group is active in the Coconut Grove community and knows which areas are more popular, which are better suited for rentals versus sales, and the best properties to get you started.
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