NORTH PORT Analysis Help

[James Calvert]

Hello! My name is James Ive been listening to BiggerPockets for a few years. bought my first house in North Port fl 3 years ago! Now I am trying to buy a 2nd and rent my current home long term. Im nervous to pull the trigger because I am seeing similar homes in my area that have been listed for rent for MONTHS... I want to know how to analyze markets to see if my neighborhood is even a good location to do this. There is alot of growth here with Wellen Park being built currently but it tends to bring wealthier people in where my home is a 900sf 2/2(not so desirable for them.  Anyone near North Port Id love to meet and talk real estate! otherwise any advice is welcome!

[Khalid Bryan]

Hey James! Congrats on owning your first home in North Port, FL and looking to take that next step into long-term rental investing. It’s completely normal to feel nervous before pulling the trigger, but doing a solid market analysis will give you more confidence in your decision. Here’s how I’d approach it:

1. Understanding Rental Demand in North Port, FL

• North Port is a growing market, and with Wellen Park being developed, you’re right that it’s bringing in higher-income residents. However, that doesn’t mean there’s no demand for affordable rentals—you just need to determine if your home fits the local rental market.

• Key question: Does the average household size in your area align with your home (900sf 2/2)? If most rental demand is for larger homes, it may take longer to lease.

2. How to Analyze if Your Home Will Rent Quickly

• Check Active Listings vs. Days on Market:

• If similar 2/2 homes are sitting for months, there may be an oversupply or pricing issue.

• If a lot of homes are listed but few are leasing, that’s a red flag.

• Look at Rental Absorption Rates:

• How many homes like yours were leased in the last 3-6 months?

• If only a few, it may take longer to find a tenant.

• Check Recent Rental Price Reductions:

• Are landlords dropping prices? If so, the market may be shifting.

• Compare your planned rent with recent lease signings, not just listed prices.

• Work with a Realtor for Rental Comps:

• Your go-to real estate agent can pull accurate rental comps from the MLS, which will show what homes actually leased for—not just their asking price.

3. Pricing Matters – Motivating Tenants with Competitive Rates

• Some overpriced rental listings will sit on the market for months. Just because a home is listed at a certain price doesn’t mean it will rent at that price.

• Pricing slightly under market can speed up leasing and help you avoid unnecessary vacancies.

• Monitor the competition closely and adjust pricing accordingly to stay competitive.

4. Alternative Revenue Streams for Unique Property Features

• If your home has unique features (large backyard, pool, modern design, or open space), consider listing it on platforms like PeerSpace for event rentals, content creation, or small business use.

• This additional income can help offset costs and increase your total reported income for future pre-approvals.

5. Backup Plan: What If It Sits Vacant?

• Lower Rent Slightly to Attract Tenants Faster

• Offer Move-In Incentives (e.g., discounted first month, lower security deposit)

• Pivot to Mid-Term Rentals (traveling professionals, snowbirds, digital nomads)

• List on Multiple Platforms (MLS, Facebook Marketplace, Furnished Finder for mid-term stays)

6. Long-Term Market Outlook for North Port

• Growth in Wellen Park = More Demand in Surrounding Areas

• Not everyone moving to the area can afford luxury homes. Affordable rentals will still have demand.

• North Port’s Population is Growing – More demand over time means more rental stability.

7. Property Taxes Will Likely Increase After You Move Out

• If you have a homestead exemption, it will be removed when you convert the home into a rental.

• The county will reassess at market value, so be prepared for a higher property tax bill.

• Always calculate future taxes when analyzing rental profitability.

8. Income from Rentals & Side Revenue Helps Future Pre-Approvals

• Lenders will consider the rental income from your first home when calculating your debt-to-income ratio for the next purchase.

• If you purchase a multi-unit property next, rental income from additional units will help you qualify for a larger loan.

Final Thoughts

• If similar homes are sitting vacant for months, it may not be the right time to convert to a rental.

• If rental demand exists at the right price point, you may just need to adjust pricing or strategy.

• Consider testing the rental market by listing it 60 days before you plan to move.

I'd suggest pulling rental comps on Rentometer, Zillow, and MLS (if available) to get a clearer picture of demand. If you want to chat more, feel free to connect—always happy to talk real estate! 🚀

Disclaimer: I am a licensed real estate broker associate in Florida, but I am not a lender, financial advisor, or attorney. The information shared is based on my experience and industry knowledge and should not be considered legal, financial, or investment advice. Always conduct your own due diligence and consult with a qualified professional before making any real estate investment decisions.