A hot commodity now: Rental properties

Demand for rental homes and apartments is soaring all over the country and our area is no exception.

We are not happy that some homes and condos are in foreclosure, but there is one way we can help. We can put ourselves in a position to offer people a decent place to live while they rebuild their lives.

At the same time, there is a significant financial advantage to ourselves.

Owning a four-unit apartment building is always a matter of making profit now while the value of the property increases over the years. The same is true with larger buildings and even with duplexes and single-family homes.

With the great deals available on these properties, their value in future years will be far greater than one could normally expect. If you are looking to boost your net worth in the next five years, 10 years, or at retirement, this could be a great investment.

Some factors to consider when looking at rental properties:

* Location: If the property is in a nice area, it will be easier to rent. The same is true if it is close to amenities such as a park, a good school, medical facilities or shopping opportunities.

* Maintenance: Consider the building's exterior. A brick building or one with good plastic siding won't have to painted.

* Below-market rents: If the units are now renting for less than general market prices, you can raise them. Higher rents also mean that the property is worth greater because rental property values are based on income.

* Less than 20 or 25 years old: It's mechanical system is less likely to have building code violations and have fewer expensive maintenance issues.

* A building that is owned or managed by someone out of state: These buildings are often the best deals because the sellers are interested in a quick sale.

* The neighborhood is stable or improving. It doesn't have to be in the best neighborhood, but it should be in one that is not declining because of a great many foreclosures or other problems.

Gabe Sanders and Susan Maxwell

Stuart Florida Real Estate

Residential Homes, Condos and Land
Waterfront and Golf Course Communities in Martin and Saint Lucie Counties

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