Future snowbirds wanting to buy now and rent/move when we retire

[SoFLGal]

You can get a house to cash flow if you buy it right and look at all the specifics on the house. I have several rentals in the Port Charlotte area that cash flow quite nicely. Probably not in an area where you'd buy a vacation home--but they cash flow.

I also have a group of Canadians who buy from me in the North Port area. Each of them have 5-6 homes and they all cash flow. You really need to look at things like insurance, taxes and flood zones. Here are some things that insurance agents take into consideration-the age of the home, style of roof(hip roof is best), how close the home is to a natural body of water or fire hydrant, how the roof is tied on, if the home has hurricane shutters or impact resistant glass, if the home has a Miami-Dade rated garage door, if the home is frame or block. These are just a few of the criteria they use to give an insurance quote. There are more but these are some of the biggies.

Another thing that's important to look at when talking insurance is the My Safe Florida Home program. It's important to have a wind mitigation report done on the home. This usually costs around $150 and some home inspectors include it in the home inspection for free. I'll give you an example of how this can effect your insurance. I live in North Port (southern Sarasota county). My home was built in 2003, has hurricane shutters, 2127 under air, hip roof, concrete block, close to a fire hydrant, no pool. Before the inspection my insurance was $1987 per year and after the inspection it was $727. Big difference.

Then you have flood insurance. 95% of North Port is not in a flood zone. There is a very specific area that is. The other areas of Sarasota and Charlotte county would be hit or miss. Generally west of US 41 and on the islands would be more likely to require flood insurance. The only way to determine the amount of the insurance is to have an elevation certificate. This would show the elevation of the home and what flood zone the home is in (if any). If the previous owner had home owners insurance and had a mortgage they probably have an elevation certificate. I always recommend getting flood insurance even if your home is not in a flood zone. If it's not, the price would be much cheaper for the insurance.

So, it is possible to cash flow a home if you're careful when buying.

[Baby Boomer]

Thank you for that good suggestion! I wonder when the maps to the flood zones will come out? I will have to ask the real estate agent if they have any information on that.

BB

[Baby Boomer]

This is what I'm concerned about also SNJ. When we retire we might be financially closed out and not be able to afford a mortgage. If we don't buy in the next several years I don't think it will happen.

BB

[Baby Boomer]

Originally Posted by SoFLGal

You can get a house to cash flow if you buy it right and look at all the specifics on the house. I have several rentals in the Port Charlotte area that cash flow quite nicely. Probably not in an area where you'd buy a vacation home--but they cash flow.

I also have a group of Canadians who buy from me in the North Port area. Each of them have 5-6 homes and they all cash flow. You really need to look at things like insurance, taxes and flood zones. Here are some things that insurance agents take into consideration-the age of the home, style of roof(hip roof is best), how close the home is to a natural body of water or fire hydrant, how the roof is tied on, if the home has hurricane shutters or impact resistant glass, if the home has a Miami-Dade rated garage door, if the home is frame or block. These are just a few of the criteria they use to give an insurance quote. There are more but these are some of the biggies.

Another thing that's important to look at when talking insurance is the My Safe Florida Home program. It's important to have a wind mitigation report done on the home. This usually costs around $150 and some home inspectors include it in the home inspection for free. I'll give you an example of how this can effect your insurance. I live in North Port (southern Sarasota county). My home was built in 2003, has hurricane shutters, 2127 under air, hip roof, concrete block, close to a fire hydrant, no pool. Before the inspection my insurance was $1987 per year and after the inspection it was $727. Big difference.

Then you have flood insurance. 95% of North Port is not in a flood zone. There is a very specific area that is. The other areas of Sarasota and Charlotte county would be hit or miss. Generally west of US 41 and on the islands would be more likely to require flood insurance. The only way to determine the amount of the insurance is to have an elevation certificate. This would show the elevation of the home and what flood zone the home is in (if any). If the previous owner had home owners insurance and had a mortgage they probably have an elevation certificate. I always recommend getting flood insurance even if your home is not in a flood zone. If it's not, the price would be much cheaper for the insurance.

So, it is possible to cash flow a home if you're careful when buying.

Thank you soooo much for sharing all of that information! We would like a house on a canal that has access to the harbor so I'm sure the house we do purchase will need flood insurance. We will take all of the pro's and con's of home buying in this area when selecting a house.

[MartyGras]

Originally Posted by Baby Boomer

Thank you for that good suggestion! I wonder when the maps to the flood zones will come out? I will have to ask the real estate agent if they have any information on that.

BB

I was watching the Charlotte County TV channel the other day and during a board meeting they said that if FEMA had funding they don't expect to see new maps until at least 2018...an interesting note to this is that FEMA's funding for mapping has been cut in half.

Gary

[Baby Boomer]

Originally Posted by MartyGras

I was watching the Charlotte County TV channel the other day and during a board meeting they said that if FEMA had funding they don't expect to see new maps until at least 2018...an interesting note to this is that FEMA's funding for mapping has been cut in half.

Gary

Thanks Gary,
I guess we probably will buy before the mapping is done.

BB