Just last month, ABC Action News reported that U.S. foreclosure filings dropped to a 5-year low in September. While this is certainly positive news, knowing that fewer homes are being seized by lenders, some investors may feel like they’ve missed their opportunity to invest in rental properties.
Foreclosures declined in 31 states in the month of September; the biggest drops werein Arizona, California, Georgia, Michigan, and Texas. From an investor’s standpoint, you may be wondering if there is still an adequate selection of rental properties and investment opportunities in communities that guarantee a high rental occupancy rate.
Well, despite an overall nationwide drop in foreclosure filings, 19 states experienced an increase in foreclosures in September. States with the largest number of foreclosure starts (meaning the foreclosure process has begun) included New Jersey, Pennsylvania, New York, and Washington, with Florida having the highest foreclosure rate in the country.
Florida’s foreclosure start rate for the month of September was 1 in every 117 households. Yet, rentals have not been affected by this awful downturn. Here in Tampa Bay our rental occupancy is averaged at around 92%. As we’ve reviewed before, banks are becoming more stringent with lending practices making it more difficult, even for people with good credit to get a home loan.
The more foreclosures we experience, the harder it gets for people to secure loans, and the more renters we have in the marketplace (responsible renters, too!). Combine these factors together and we have ourselves a “Perfect Storm” for investing in Florida cashflow rental properties, especially right here in Tampa Bay.
We locate and negotiate the best deals in town through our contacts in the court house and in some private banks. From there, our in-house construction crew gets the home rehabbed and ready for tenants, and can even get the property approved for Section-8 if necessary.
We provide top-notch Florida property management and maintenance for the duration of the investment, making it much easier for our out of state investors who have invested in Florida foreclosures.
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