More and more people are searching for ways to accrue some passive income. For some, there just aren’t enough hours in the day to both make their desired income and spend time doing the things they’re passionate about.
There are lots of different avenues you could take to find some passive income, but by far, one of the most lucrative is investing in a rental property.
By finding the right property and keeping it filled with trustworthy tenants, you can have a solid revenue stream all year long.
At this point, you’re probably wondering, “What are the best things to look for in an investment home?” You’ve got lots of options, but one thing’s for sure: your rental property should be on Anna Maria Island. This little slice of paradise maintains that “Old Florida” feeling and is perfect for investing in your next property. Before you start browsing all the properties for sale on the island, here’s how you can narrow down your search.
Condo or Home?
When buying an investment property, you’ve got two main types: condos or homes. Each option has its own unique pros and cons, so be sure to do your research before you decide.
Purchasing a condo can take a lot of work off of your hands in terms of maintenance. You won’t have to worry about landscaping the property or fixing appliances since the condo complex will typically have community management in place to take care of all of that for you. Plus, condos will usually have some type of security system and/or personnel, which can bring added value to your tenants.
If you’re considering purchasing a condo, you’ll want to have quite a bit of money saved from the get-go. Condos tend to require quite a hefty down payment, often around 25%. Additionally, some condo complexes have specific guidelines about when you can start to rent it out; you may have to wait as long as a year after purchase before you can book your first tenant. You’ll also want to consider your future plans; you might not be able to purchase multiple condos within the same complex.
Vacation homes, on the other hand, give you a bit more freedom. You will still need to have a down payment, but it often won’t be as steep as what a condo would require. You can usually start renting your home as soon as the purchase is complete, and you can buy and maintain as many rental homes as you please.
Vacation homes aren’t without their disadvantages, though. Keep in mind that you’ll be responsible for the upkeep of the home and its surroundings. On top of that, if you want any sort of security features in place, you’ll have to do that on your own, too.
Another major factor to consider is whether you want to utilize the property when it’s not occupied. Would you rather stay in a condo or a home? Answering this question can be a huge help in narrowing down your options.
The Highest Return
When you’re looking at investing in Holmes Beach real estate or properties available throughout Anna Maria Island, you’ll want to ensure you get the highest return possible. That’s what an investment property is for, after all! So, between condos and homes, which has the better return possibility?
Of course, there are lots of factors that go into your potential returns. To start, think about how the property will appreciate. Condos tend to appreciate quite a bit, but you’ll likely also have to pay fees to the condo complex to keep the property in the first place, which can offset your potential profits.
Single-family homes also experience quite a bit of appreciation, but to truly increase the value of your property, you’ll be responsible for the upgrades, as we mentioned above. If you don’t want to bother with the maintenance yourself, you might be interested in a property with an HOA. What is HOA? It stands for Homeowners Association, a group that takes a fee from those in the community and, in return, handles the landscaping, community utilities, and more. Again, these HOA fees might cut into your potential profit or appreciation value.
That being said, if you do purchase a home in an HOA community, you might be able to charge a higher rate to your tenants. However, not every guest will be willing to pay the higher price. All in all, if you’re willing to do the work to find trustworthy tenants and maintain the property yourself, owning a home has a higher potential for return. But if you want something that’s more hands-off, a condo is likely your best choice.
Find the Right Location
It goes without saying that finding the right location is key in picking the right property. Whether you want to buy a condo or a home, you’ve got to find a desirable spot. Anna Maria Island real estate companies offer properties in three cities across the island: the city of Anna Maria, Holmes Beach, and Bradenton Beach.
Anna Maria is located on the northern side of the island and tends to be quiet and laid-back. Holmes Beach is right in the middle of the island, offering close proximity to all attractions, and is widely considered the most family-friendly community on AMI. Bradenton Beach, the southernmost community on the island, has tons to see and do and is just a short drive or trolley ride away from mainland Florida.
When you’re thinking about location, you’ve got to consider the balance between cash flow and appreciation. These two factors often work opposite each other; locations with higher appreciation will often experience worse cash flow and vice versa. So, which is more important to you: having the cash flow for the immediate future or looking for a property that will appreciate for years to come?
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Choose BeachSales.Mobi
Whether you choose to purchase a property or what kind of property you want to invest in, it’s vital to find the right real estate agent. Want to know why it’s important to work with a real estate agent? It comes down to one main factor: experience. Local real estate agents know the area and can help you determine which city and which property will help you meet your goals. On top of that, they can help you negotiate contracts and make sure you’re getting the best deal.
When it comes to real estate agents on Anna Maria Island, look no further than BeachSales.Mobi. We have a huge catalog of houses for sale in Holmes Beach, FL, as well as homes and condos available across the island. Our team has combined decades of experience in matching investors with their perfect properties, and we’re more than happy to answer all your questions or concerns. If you’re ready to find the investment property of your dreams, check out our current listings or reach out to speak with an agent today!
