The Ideal Investment Property at the Shore: Mo Money No Problems Part 2 of 4

The Ideal Investment Property at the Shore: Part 2 of 4

Four Parts of an Ideal Investment

  1. TARGET LOCATION
  2. Mo’ MONEY NO PROBLEMS 
  3. SHOP Til YOU DROP
  4. RENTAL READY

 

Part 2: Mo’ money No problems

So, you’ve found the perfect location with which to sink your dough. Now, Show Me the Money!!…lol… just kidding but seriously this is the most important step in the whole process. What is the origin of the financial aspect which is funding this entire venture? Here are some options and unless you are bartering goods or services (which I doubt but I could be wrong) I highly advise you to seek the counsel of a Trusted Financial Advisor:

Research Your Budget: Cash, 401K, HELOC and Mortgage Lender
Research Your Budget: Cash, 401K, HELOC and Mortgage Lender
  • CASH…is still King. If you have the cash to fund your Investment Property (IP) then this is clearly the Quickest & Easiest method in the game.
  • 401K or IRA which may only be an option for folks who’ve invested during their career years and may not be an option for those of a younger generation. But nonetheless this could still be a potential option to purchase your IP.
  • HELOC: Pulling “Cash” from a Home Equity Line of Credit. In my past experience, this was comparable to a Cash Deal.
  • Mortgage Lender…by far the most common yet with the most amount of Red Tape & Risk but with an equal level Reward

Whichever purchasing option you choose, and there very well may be others not mentioned above, I’ll reiterate… this is the Most Important Step and the basic foundation to investing in Real Estate. This step will lead you in the direction towards what price range you can afford to invest within. Make an effort to NOT “put the cart before the horse” and start looking at properties first and then find out your price range. This method could lead to disappointment and that is no way to begin this amazing process.

*Very Important…First, you need to know what you can afford. Bottom line.

 

The Ideal Investment Property at the Shore: Target Location Part 1 of 4

Navigating through the Real Estate market with the goal of purchasing a Vacation Rental Property involves a few simple yet strategic steps to follow.  There is a combination of elements to consider when purchasing an investment property at the Shore. Unlike purchasing a primary residence, a rental property requires more, should I say, Pomp & Circumstance. Meaning: this property must appeal to the masses, stand out above the competition, attract future guests and ultimately generate a positive cash flow to you.  It would be my pleasure to eliminate any confusion or hesitation when buying the proverbial “Turn Key” Rental Property and reaping the benefits of one of the World’s only tangible investment.  I will be discussing the ideal investment property in four parts.

Four Parts of an Ideal Investment

  1. TARGET LOCATION
  2. Mo’ MONEY NO PROBLEMS 
  3. SHOP Til YOU DROP
  4. RENTAL READY

 

 

Part 1 - TARGET LOCATION

The key, no pun intended, is to narrow your search to a location with amenities. When a potential renter begins their search of an ideal vacation property, it is all about convenience. Your Investment Property (IP) must be in a desirable location with close proximity to the Coast… as in the BEACH or on the BAY. Water views are highly recommended but not typically a “deal breaker” for the average renter. Just the idea of being close to an island’s waterway is sufficient. Trust me. There is the whole idea of Coastal Living which invokes the senses and allows the mind to set on vacation mode. This is the environment in which to invest. Create the destination for others to dream about visiting and spending their time and hard-earned money. Choose an area richly full of natural elements, beautiful surrounding and appealing activities a while keeping in mind guests of all ages. This location must be a place with either history or a definite future, a place you would like to vacation.

 

Pier Live Entertainment
Pier Live Entertainment

*Note: If the location you are looking to invest has a Boardwalk, Entertainment District, Museums, Main Street with Shops… please, please, please, start your search within a short distance to these attractions. Renters want it all and they deserve to have it all. They are your future clientele and the whole idea is to build relationships so they become your repeat renters every season. So, give them all the conveniences within the realm of possibilities when pin-pointing your IP location.

Pier Amusement Park
Pier Amusement Park

Additional features to take into consideration when purchasing you IP is to scout out the Restaurants, Bars & Grills. Renters don’t always want to cook on their vacay. As the ol’ saying goes…they want to be Wined & Dined… as they should be. Your IP needs to be in an area where they have options to Eat, Drink & be Merry all while enjoying the islands eateries and exploring local gastronomy. Start with the locations which attract visitors in abundance. Visualize yourself taking in the sights, scents and sounds within the location and this is what your future renters will be experiencing.

Picking the perfect location is truly the most important step to take when looking to buy an investment property. If you are in the right location all the rest will fall into place.

CLICK HERE TO READ: Summer renters will pay more for perks, Realtors say

Hope Cathryn Rhoades
Hope Cathryn Rhoades, sales and rental specialist at Blue Ocean Realty in Wildwood, shows off some of the condos people are buying on the Boardwalk. The condos can average anywhere from $2,800 to $4,200 a week.

 

Summer renters will pay more for perks, Realtors say

 

Hope Cathryn Rhoades, sales and rental specialist at Blue Ocean Realty in Wildwood, said numbers have been strong for 2016. She added that the most common trends she sees are renters who want to be close to the beach and bring their dogs with them.

“That’s the biggest thing. People want to be close to the beach and boardwalk, and they want their pets with them. And they’ll pay extra,” Rhoades said.  READ MORE