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If you’re investing in Florida real estate right now, could rent-to-own be the solution to some of the known issues with the housing market in the Sunshine State?
Florida is and always has been one of the most desirable and popular real estate locations in the country, but it currently is not without its problems for investors. Rent-to-own is well worth exploring for Florida properties—but first, we need to establish what’s going on with the market that makes this state a good candidate for this specific type of real estate investing.
As with all other forms of investing, rent-to-own can be the right choice (and maybe even the holy grail for some), but you really need to understand when the conditions are right for this type of investment. Let’s take a closer look at what these conditions are.
When Is It Right to Invest in Rent-to-Own?
An investor considering rent-to-own should take into account two major factors. The first is whether there is a strong demand for housing where they’re considering making the investment. The second is whether there is a sizeable pool of prospective buyers who are not yet able (or willing) to buy a property. Typically, this is the case in hot markets that simultaneously are experiencing issues with affordability, inventory, or other key market parameters.
What you’re looking for as an investor is a housing market that is currently slow because of tough market conditions, not because the area is unpopular. Think of it this way: If you’d be better off selling in a few months or years down the line and could make more by renting out than by flipping the house right now, then rent-to-own can be a great option. You get to lock in a buyer right now and still sell at market value when the time is right.
Timing plays a huge role in making the decision to invest in rent-to-own. If you’re investing in a…