When people picture living in Florida, they probably picture something that looks a lot like the city of Palm Coast. The town is situated perfectly between St. Augustine and Daytona Beach, giving it access to some major tourist destinations. And with 19 miles of beaches of its own, what’s not to love?
People are dying to live here! And that’s great news for you as a Palm Coast property investor. What’s even better is the rental market in Palm Coast has stayed highly consistent in recent years with an average rental price of $1,695. The iron is hot, but if you’re planning on striking, you have to have a game plan.
The process of planning out your Palm Coast property investment starts from the buying process all the way through day-to-day rental operations. If you’re new to property investing or just want to brush up on your knowledge of the local area, we’re here to help.
In this guide, we’ll go step-by-step on the considerations to take when planning for an investment property.
Researching the Palm Coast Market
Planning for your Palm Coast property investment starts with developing a healthy understanding of the local market. Luckily, you’ll find that Palm Coast property costs tend to be lower than in other parts of Florida. It’s still considered relatively undiscovered, so you won’t need as much initial capital as major metropolitan areas.
That hasn’t stopped its growing popularity, however. Palm Coast is growing fast, with many new residents flocking from the Northeast and Western regions of the country. People move from other parts of Florida as well due to rising costs in bigger cities. Vacation rentals are popular here too thanks to the town’s easy-going atmosphere.
All that is to say, now is the time to invest in the Palm Coast rental market. The population and popularity of the area is growing each year, but property costs haven’t inflated as much as in other parts of the state. That means your ROI potential is high right now.
Deciding on a Location
Once you have a grasp on market conditions, the first obvious step is to find a property. That starts with the location. Whether you’re looking for a short-term or long-term rental can impact the viability of the location as well. Tenants coming to town on vacation are going to have different needs than those staying here long-term.
Palm Coast is home to many beautiful and safe neighborhoods for residents. Cinnamon Beach, Hammock Beach, and Grand Haven are a few popular choices with property investors. There are also many great single-family homes separate from these gated communities. Always make sure you check beforehand on any renting restrictions in the area you’re considering.
Analyzing Potential Properties
So you have a few neighborhoods in mind, but how can you narrow down your search to the perfect property? This starts with utilizing every tool available to you, like online listings and open houses. Partner with a real estate agent or even better, a property management company that offers investment services.
Our team at Everest Property Management offers free rental analysis to tell you your income potential with any Palm Coast property.
While rental income is your bottom line revenue for a property, you also have to weigh aspects of the property like:
- Property condition and any needed repairs or renovations
- Expenses for the property (maintenance, marketing, etc.)
- Appreciation potential
- Zoning or legal requirements needed to be met
Any costs associated with the purchase and upkeep of the property have to be outweighed by the profit and potential of the property.
Budgeting and Financial Planning
When you find the ideal property, it can be easy to jump in head first. But it can be easy to slip up even with a profitable rental if you don’t budget correctly. The foundation of that is securing feasible and affordable financing. Mull through your options in traditional mortgages, investment property loans, and Fannie Mae or Freddie Mac loans.
The monthly payment from your purchase isn’t the only thing to consider either. The most crucial costs for your property investment are:
- Down payment
- Closing costs
- Property inspections
- Property management fees
- Maintenance (planned and emergency)
- Renovation costs
Once all this is factored in and you’re still getting the return you want on your investment, then you’re ready to move forward.
Managing Your Palm Coast Rental Property
So you’ve found the right Palm Coast property investment for you and you’re ready to move forward. Great! But what comes next? Many landlords who self-manage go into actually running their rental property without a plan, assuming it will be easy to handle. But this can be disastrous for your investment for numerous reasons, especially if you’re an absentee landlord managing from afar.
It can be helpful to plan for how you will manage your rental property long before you open the doors on it. That’s why many property investors will partner with a property management team to take the burden off of their shoulders. Property managers can handle all the planning for you and maximize your ROI so you can focus on other business endeavors.
If you do plan to give landlording on your own a shot, make sure you develop strategies to reduce vacancies and maintenance costs. A marketing strategy encompassing effective rental listings, competitive pricing, and social media is crucial to drawing tenants in. As is a uniform and stringent tenant screening process. Make sure you form a reliable maintenance network as well to keep your property in shape.
Measuring Success with Palm Coast Property Investment
As you move forward in Palm Coast with your rental property, make sure you never lose touch with your rental business. Keep a constant eye on property performance, local rental valuations, and expenses to maximize your ROI. An investment property can only be truly profitable if the people running it are diligent.
If you are a property investor in Palm Coast, FL, and want a partner in property management who’s going to be just as diligent as you would be, look no further than Everest Property Management. We’re here around the clock to deliver the care that your property and tenants deserve.
Contact us today for more information.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
