highland heights, OH · Member since 2013 · 27 posts · 2 votes
looking to find out if Sarasota is a good market to invest in rental property. Am not looking for high end or vacation rental market. Rather year round rentals. Your expertise is appreciated. Thank you.
Hi Michelle, I think the SarasotaBradenton market is a great place for annual rentals. I prefer having 3-4 bedroom SFH properties in nice communities and good school districts. If you screen well you can have long-term tenants that you should profit on, assuming you get a good buy.
I think Sarasota would be a great place to have a rental as long as you don't buy anything crazy expensive. There is a good amount of tourism and you are likely to have low occupancy if you price the unit right and have a location closer to the beach. Check the numbers and make sure it can be profitable before you make a decision.
I just showed a client a 3/2/1, 1,100 sq. ft. in north Sarasota for $76,100 with $25,000 in repairs needed. Rent will be $1,250/mo. Assuming all cash sale, the gross income will be $15,000 per year.
Expenses (assuming my management fee structure of 5%/5% (five or more homes under management to qualify)) will be $750 for the yearly leasing fee, $750 for yearly management (paid monthly as $62.50), estimated taxes of $1,340/yr. and estimated insurance of $1,500/yr. for a total expense of $4,340.
Net income will be $10,660/yr, or $888.34. That's a 10.5% COC ROI on a full cash deal (assuming we're right at budget: will be higher or lower once we finish the rehab) - now throw financing in there and look at the power of leverage!
I get these deals in my office constantly. PM me if you'd like to have a look at some potential moneymakers.