Want to Invest in a Vacation Home? Find it in Florida!
If you’ve been thinking about investing in a vacation rental in Florida, now is a great time. Interest rates are low, and there are plenty of beautiful properties available in Jacksonville. Our guide offers great advice for those interested in a Florida vacation home, and when you’re ready to buy, work with Realtor Dany Amparano to find your dream property!
Why Invest in Real Estate?
If you have extra cash in the bank not doing much, it’s time to make an investment! Real estate is one of the smartest ways to turn your inactive cash into income.
● With each mortgage payment you make, you immediately increase your personal equity.
● If you find a property that is under market value, your profit is basically instantaneous. Look for real estate owned houses, short sales, estate sales, off-market properties, and HUD foreclosures.
● Purchasing an investment home provides various tax benefits on any interest you pay or improvements you make.
● If you choose to rent your property based on its full value, you are guaranteed a maximum 15% return on investment.
Florida: The Ultimate Location for Real Estate Investment
So you’ve decided to put your money to work by investing in real estate-- smart choice! Florida is a great choice because of its popularity as a vacation destination. Hundreds of millions of people travel to the Sunshine State each year. The state boasts several attractions, including the gorgeous beaches in Jacksonville.
When you buy a house and fix it up to rent out to tourists, you can take advantage of the millions upon millions of dollars these visitors bring into Florida. Plus, you end up owning a place to make a quick escape to in one of the most attractive areas for a vacation. The climate is certainly attractive. If you’re sick of the biting cold where you live, Florida offers an average annual high of a warm-- but not too hot-- 79.5 degrees Fahrenheit while the temperature lows tend to hover around 50 degrees Fahrenheit.
Earn Passive Income
Rather than sitting empty, you might decide to turn your getaway into a source of income when you aren’t enjoying it yourself. If so, follow best business practices. Create a business budget that accounts for things like upkeep and advertising, and register your venture with the state.
Budgeting can be tricky, so you might need to connect with other vacation rental owners in your area to get a feel for what to expect. Price out hiring a property manager, and include that in your budget.
Registering your business is more straightforward; the LLC Florida registration process is simple if you use an online formation company to file the paperwork for you. Plus, it saves you from having to hire an expensive attorney. Once your LLC is set up, you’ll need to keep up with filing your annual report to the Florida secretary of state every year to stay in compliance. It sounds intimidating, but essentially, this process simply involves updating the state of who’s authorized to run your business, where you’re located, and your employer identification number (EIN). This guide from ZenBusiness, Inc. lays out what you need to know.
Tips for Maintaining a Florida Vacation Home
Once you’ve found the perfect property, you want to make sure it stays in optimal condition both for your guests and your own enjoyment. Here are some of our best tips for maintaining your Florida vacation home.
● Install an alarm security system that contacts you in case of suspicious activity. HomeAlarmReport.com recommends Nest Secure, Frontpoint Home Security, and Vivint, depending on how much you have in your home security budget.
● Keep a key lock box only accessible by code on an accessible door for workers, contractors, cleaners, or whoever else you may hire to help with upkeep when you are not in state.
● Create a list of your preferred contractors you can call on for maintenance or in case of emergency. Talk with each one about your home’s regular needs and your situation. Keep your list with their contact information at your permanent home so you can reach them whenever needed.
● Also keep a log of all your vacation home’s major appliances-- make, model, and serial numbers. This information will come in handy in case you need to schedule service.
● Speaking of appliances-- buy the extended warranties on any new purchases, especially washers and dryers. Furthermore, buy water and energy-saving appliances to take advantage of tax and energy incentives while keeping your water costs down.
● If your house does not already have one, install a kitchen sink disposal to avoid plumbing catastrophes.
● Take up carpet and instead insall low-maintenance flooring. This is especially helpful if you buy a Florida beach home-- no one likes sandy carpet!
● If your house has a pool, hire a maintenance company to balance the water, clean it, and do other necessary maintenance. If your pool won’t be in use for a while, make sure the area is safe with alarms and safety equipment, and consider investing in a pool cover that keeps the water sanitary and free of debris.
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Real estate is the perfect investment for people who want to put their extra money to work. As a popular vacation destination, renting out your extra home allows you to take advantage of the millions of dollars tourists spend in the Sunshine State each year. Plus, it’s a great area to have an extra house where you can escape to warm weather when you need it. Once you’ve invested in the perfect property, you want it to stay in great condition. Keeping a list of trusted contractors, investing in low-maintenance appliances, and protecting areas like the pool when not in use helps ensure your home stays in great condition even when you are not there to take care of it yourself.
Are you looking to sell your home, or buy a permanent or vacation property in Jacksonville? Contact Realtor Dany Amparano! You can touch base with her by calling 904-704-2940