Last year, Florida had the biggest population increase in the U.S., with almost 320,000 new residents. Many of these people are renters, so it is a perfect time to invest in rental properties.
But buying investment properties can feel daunting. If it is your first time or you aren't familiar with Florida, it can be hard to know where to start.
In either case, don't worry! This article covers five great real estate investing tips to guide you on your journey.
1. Learn About the Florida Market
When looking to invest in Florida, it is key that you research the characteristics of each area. On a state-wide scale, investigate local economies, real estate trends, and population demographics.
DeLand is an ideal to invest in commercial properties, as it is located close to Orlando. So there are plenty of opportunities to network and form business connections.
Volusia County is also seeing impressive growth in almost all sectors of the job market. So invest in residential properties, to benefit from the growing population.
2. Enjoy the Florida Tax Climate
Florida has a great tax climate, which is very attractive for many property investors. There is no state income tax, which proves to be a huge benefit for rental businesses.
There are also Opportunity Zones located throughout Volusia County. These areas are designed to push local economic growth, so you are bound to see a great return on investment.
3. Keep Your Portfolio Diverse
To build a long-lasting career in property investment, keep your portfolio diverse. Invest in different types of property, with both commercial and residential units.
Residential properties could be anything from single-person homes to apartment buildings. Whereas commercial properties could be warehouses, office blocks, or retail outlets.
Each has its own set of pros and cons, so by having both, you create a buffer if one doesn't work out.
4. Work With a Local Property Manager
Running a rental business can be hard to maintain as one person. So work with a property management company if you want to save time and increase your earnings.
They can help you with property acquisition, as they are familiar with the local market. Through their connections, you may even be able to see properties not yet on the market.
They can also help you manage tenants, organize maintenance, and do property marketing. They can also assist with budgeting and legal proceedings.
5. Account for Natural Disasters
One thing to account for when buying property in the DeLand area is natural disasters. Florida is well-known for its hurricanes and other extreme weather.
These can often drive up property insurance prices. So make sure you factor in property location and resilience before buying here.
Become a Pro at Real Estate Investing
Real estate investing is an exciting opportunity to grow your rental business. Using the tips above you can navigate the Florida property market with ease.
To make your journey even easier, choosing an expert property manager is your best option. PMI Central Florida is a full-service property management company, with many years of experience.
Get in touch with us to organize a consultation to discuss your portfolio today!