Owning a Miami investment property is a great way to earn passive income. You can renovate and sell for profit or upgrade some features and rent to tenants. But, even though extra income sounds nice, investment properties are big decisions. Here are some things to consider in order to determine if you are ready to purchase a Miami investment property.
Your Savings Account Is Ready
You need to have a decent amount of savings ready to go for purchasing an investment property. A hefty down payment is crucial, especially if the dwelling is your secondary residence on top of your existing mortgage. Most banks want at least 20% for a down payment and verification of savings for expenses. If the property needs a lot of work, some banks require special renovation loans if you cannot pay cash for the house. Ultimately, you need to save some of your money for repairs and upgrades.
Plan for Using Your Miami Investment Property
There are two popular uses when buying a Miami investment property. Some people purchase a property, fix it up, and then sell for a profit. This is often referred to as “flipping.” Another strategy is to rent the property after purchasing. The more you improve the property before selling or renting, the better the payoff. A good rule of thumb is that if you can rent the property for at least 1% of the purchase price, you can potentially cover the mortgage payments.
You Know the Miami Area
If you are going to invest in real estate, knowing the area and market are key. No one wants to get taken advantage of. Research the neighborhoods available and which areas bring the highest resale values. If you are planning to rent your property, determine the most popular areas where rental income is high. Hiring a realtor is great for learning about the Miami area and neighborhoods. The team at Jessica Nasib is experienced in Miami real estate.
A Miami Investment Property Requires a Team of Professionals
An investment property requires a wide variety of knowledge depending on your plans for usage. If the Miami investment property needs a lot of work, then you will want a good team of contractors, cleaners, and handyman services.
You’ve Got Jessica Nasib on Your Side
If you are ready to purchase a Miami investment property, then Jessica Nasib is here to help. If you’ve got a good real-estate team behind you, there’s no reason to hesitate. Jessica has been working with Miami investment properties for years. Give our team a call today or visit our website to get started.