Thinking About Real Estate Investing? Avoid These Top 3 Mistakes

We’re seeing a lot of real estate investment activity in the St. Augustine area, and now’s a great time to take advantage of excellent deals and opportunities. But here’s some advice from someone who’s been active in the St. Augustine and Jacksonville FL real estate market for more than 20 years – the top 3 mistakes our real estate professionals see investors make:

1. They don’t understand the current market trends in a specific neighborhood.  I speak to many investors that know a lot about our general market area; however, every neighborhood has behaved a little differently during this market adjustment. You need to be ahead of everyone else in seeing when the prices are declining, becoming more stable and beginning to improve. An investor may avoid a neighborhood because there were so many distressed properties when the reality is that neighborhood has already adjusted and the inventory and prices have stabilized. It is very hard to know what is about to happen in a neighborhood if you don’t spend a lot of time actually seeing the inventory.

2. They don’t know details that aren’t public record. Many investors are interested in condos now because the prices have adjusted even more than single family homes in the Jacksonville area. While condos can be a great investment, your success is more dependent on the other owners and the Association. If you don’t know the rental policies, the potential lawsuits facing the Developer or Association or other issues currently brewing in the Community, your investment may not be as successful. Realtors that handle sales in that Community every day may give you the insights you need to make the best decision.

3. They don’t know the rental market. Getting the property at a great price is very important but equally important to the success of your investment is having a property that is a desirable rental. If you are not knowledgeable about what properties are most in demand and what rental rates you might expect, it is very hard to make the best decision.

If you are considering an investment in the Jacksonville or St. Augustine area, please find an advisor that is intimately aware of the neighborhoods, the Community issues and the rental potential for the property. We at Davidson Realty and Davidson Property Management would love to be that trusted advisor.