Residential & Investment
Property  Specialists

Budget, Time Frame, and Return on Investment for Prospective Property Investors

Popular perception is that it’s a simple task to become a property investor. But finding and purchasing a property can be challenging. And finding the right property harder still. Properties can vary so much. Every house is different, but so is every investor. And even when it’s the same investor, each transaction can be different. The most important factor in selecting a property for investment is aligning the property with what matters most to the investor, and that requires making sure our criteria for a potential investment property match the investor’s unique requirements.

Budget & Time Frame

What’s going to matter most to an investor, is we’ll need to move some money around within a budget, regardless of if we’re going after single-family, multi-family, or other type of property. So, what is the investor’s budget for purchasing and improving the property?

An equally important factor for the investor will be their time frame. So, not only their budget but a time frame. Are they going to be in the game for a while and looking for more of a long-term investment? Are they looking for a quicker return? So what is the amount of money in their budget and what is their time frame before they expect to see a return on that investment?

Time Frame & Return on Investment

The investor’s time frame is extremely important when we’re identifying a potential investment property. If an investor says they want to work within a six-month window, or want to buy a property to rent until they retire in ten years, or want to buy a property to provide passive income in their retirement, we are going to discuss what’s a reasonable return for their time frame.

The formulas for returns on property investment have been around for eons. We don’t need to reinvent the wheel on the one percent return for rent or the 70 percent rule for purchasing a property to flip. They’re already established.

So for an investment choice, once we know the investor’s time frame for their expected return on investment we can develop our criteria for an investment property. The investor’s financial strategy consisting of budget, time frame, and return on investment goals are extremely important in identifying if an investment property is going to be a good fit for that investor or not.


Author

Joelene Fischer

As an experienced Realtor®, real estate agent, broker, property manager, and licensed general contractor, Joelene is uniquely qualified to be your partner in building your Florida real estate investment portfolio. In addition to working with real estate investment clients, Joelene is the founder of a real estate group and property management firm for the management of daily rental activities and oversight of maintenance of client properties. Sunburst Real Estate Group works with landlords, renters, and real estate investors across Charlotte, Sarasota, and Manatee counties; including the communities of Tampa, St. Petersburg, Bradenton, Longboat Key, Sarasota, Siesta Key, Osprey, Nokomis, North Venice, Venice, Manasota Key, Englewood, Port Charlotte, Fort Myers, Sanibel Island, and Naples Florida.

 

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Sunburst Real Estate Group

Office Phone: (941) 244-2850

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Sunburst Real Estate Group provides property management and realty services to landlords, renters, and real estate investors across Charlotte, Sarasota, and Manatee Counties; including the communities of Tampa, St. Petersburg, Bradenton, Longboat Key, Sarasota, Siesta Key, Osprey, Nokomis, North Venice, Venice, Manasota Key, Englewood, Port Charlotte, Fort Myers, Sanibel Island, and Naples Florida.