5 things to consider when buying an investment home.

So you're looking to venture into the short term rental market as an investor? Well here are 5 things to consider before doing so.

Number 1 - Research the location, why would guests choose your property over others? I sell vacation homes in the Disney market in Orlando Florida, so I advise my clients to purchase within a 30 minute radius. The location is key to getting a good number of bookings. 

Number 2 - Make sure the community you buy in offers additional amenities such as a community pool, gym, restaurant if possible, tennis and basketball courts etc. Guests don't always want to go to the theme parks, so offer them something to do on their relaxation days. Ask me for a list of communities. 

Number 3 - Consider the amount of bedrooms the property has. The ideal amount is 4-6 bedrooms. I've seen people buying 7+ bedroom homes and they find it hard to rent them because you have to reply on larger parties, whereas a 4-6 bed property is normally good for a single family

Number 4 - Do some research on the historic occupancy rates. You should be looking for at least 70%. Ask your agent to find out for you. You want to make sure the home is occupied for most of the year to make the numbers work in your favor. 

And number 5 - Ask for numbers. Your agent, or me if you need help, will be able to get the financials for any of the homes that have been previously rented. Not only do you want to see the income, but also the expenditure so you can see the actual net number. 

If you have any questions about buying an investment property in the Orlando area, please feel free to call me on 407-619-3517 or email me at andy@maximrealtors.com

www.yourrealtorandy.com

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Andy