A wise man once said that you should never let a good disaster go to waste, and this goes double for the current recession. While the stockmarket does its manic-depressive impersonation, there are still great deals to be had in Real Estate on the west coast of Florida, and Naples in particular.
Historically, the west, or gold coast of Florida has been the final destination of retirees from the east coast to the mid-west. Towns like Fort Myers, Naples, and Bonita Springs thrived on the people spending their golden years in what is fondly called “God’s waiting room,” and spending their money here too! The result is a bustling coast with a growing service economy that catered to tourist and seniors.
Between 2002 and 2006 the amount of speculation in realestate had reaches epic porportions in these areas. What was once slow and steady housing growth had transformed the sleepy burrough of Cape Coral into the fastest growing metropolitan area in the country, with the rest of the golden coast rushing to catch up. When the bubble burst and the economy went from bad to worse in 2008, Cape Coral was to be known as the epicenter of the subprime mess.
So two years later, are there still deals to be had on homes in naples, fl? The answer is a resounding yes! There are 3 or 4 different ways to value a home as an investment, but the one I favor is cash flow. The gist is this-can I buy a home with a regular 80/20 mortage and rent it to break even? If you unpack that last sentance, there are a few things to consider. First, by 80/20 mortgage I mean one that will not have any adjustable rates, and one that I put 20% cash down at the closing table. After the house is purchased, if you can pay for insurance, repair, taxes and mortgage with the renters checks, you are breaking even, and can continue to rent to buy more and more homes like these as you have money for the downpayment.
Check out realtor sites for current rent and average prices, and get hunting!