Why Key West Rental Income Properties are Great Investments

KEY WEST, Fla. - Dec. 29, 2014 - PRLog -- Per Fred Mullins, Top Producing Member of Team Mullins at Coldwell Banker Schmitt, "There are a number of factors, which separate a great investment rental property from one that's mediocre. You've likely heard the cliché about the three most important things in real estate being "location, location, location." Of course, the reason for this repetitive emphasis is because it’s absolutely true. A large, well-appointed home in an undesirable location is just that, a large, well-appointed home in an undesirable location. While it might have many creature comforts and be stylish, it’s location suppresses its value substantially.

Property investors must be smart with their choices, and, this means thinking strategically. What this means is thinking about a rental property purchase as what it actually is, an investment. When people want to get away and have fun, they travel and stay in destination locations. By the same token, those who are employed in these destinations need some place to live.

More reasons why, Key West Rental Income Properties are Great Investments

Because Key West relies on tourism for its economy, it means hundreds of thousands of visitors throughout the year. It likewise means that people employed in the area need a full time residence. These are two examples of how a rental property in a resort area can serve as a robust income stream for an investor.

Location is so important, in fact, is that it is distinctly advantageous, having more benefits than a rental property in an ordinary residential neighborhood. First and foremost is the amount of rent an investor can charge, and secondly, the length of time for vacancies. A home in a destination area, like Key West, will rent for a high price, be it for short term vacation stays, or a full time residence for renters living in the area. Not only will it bring higher rent, it will also not suffer from lengthy vacancies. In fact, it’s quite likely the property will have very short, periodic vacancies.

What’s more, a rental home in a destination area will gain more appreciation precisely because of its location. Though the entry price will be higher than a property in an ordinary residential neighborhood, it will have a bigger return. That’s especially true for investors which plan to hold for many years, then sell for a large profit to reinvest in another rental home.

With interest rates near historic lows and a number of affordable mortgage financing options, an investor can take advantage of timing, opting to purchase now, while conditions are so favorable. Doing so will mean having substantial collateral leverage for future income property purchases. If you have any questions about Lower Keys Real Estate please contact us.

Fred Mullins has more than 16 years of cross functional experience in real estate, international asset management and construction management. He has been a part of the management team for several Fortune 100 companies, including AT&T, Visa, FPL and C. B. Richard Ellis.

His responsibilities have included real estate / property management portfolios of more than 9 million square ft. and international responsibilities in more than 10 countries.

Fred holds an MBA, B.S., real estate license, mortgage broker’s license, USCG Master Captains license and commercial pilot’s license and is the owner of www.lowerkeys-homes.com serving the lower Florida Keys.