Tampa Bay is one of the country’s best places to own rental property. But before you do, make sure you have a plan.
You will need to know how you are going to purchase the property. Do you have enough cash for the purchase or will you need financing? Speak to your lender and tax adviser before you being your search.
Find a Realtor who works with investors. Have they sold investment properties before? Do they own investment properties themselves? You want someone on your team who has experience and can give you good guidance.
Once you find a suitable property, you can estimate what your cash flow will be.
First decide how much rent to charge. Compare your property to other rental properties in the area. Multiply the monthly rent by 12 to determine your potential gross income. From there deduct an expected vacancy rate (such as the turnover time between tenants) to find your Effective Gross Income.
Now deduct your operating expenses. These include fixed expenses like taxes and insurance along with variable expenses such as advertising for tenants, maintenance, management fees and such.
Now deduct your mortgage payment if you have one. The amount you have left is your Cash Flow before taxes.
If you have any questions about purchasing or selling rental property in Tampa Bay give me a call, I’d love to help you.
Kelly Harden, Realtor®
Mihara & Associates, Inc.