East or west of I-75 (Sarasota, Bradenton: short sales, real estate market, foreclosures)

[skaranam]

I am planning to buy a property in Bradenton. This will be strictly for rental/investment property. People are very knowledgeble on this forum and I need your input. Properties on the west side of I-75 appears to be slightly older. So, there will be more maintenance involved. But this area is closer to the beach. Propertied east of I75 are newer but are away from beach. LWR had CDD which is another consideration. What are the other pro's and con's with these areas?

[SoFLGal]

Just curious why you chose Bradenton? Do you live in that area?

[Randy Forbes]

There are plenty of nice subdivisions (Mill Creek, Country Creek, Country Meadows, Greyhawk Landing, and where we're currently building, Twin Rivers) East of I-75 without CDD surcharges attached.

I expect one of several RE Agents will be along to post the standard nomenclature listing pros & cons (?) of the area.

Personally, we'd rather make the 30-40 minute drive to the beaches, and live where it's a little more peaceful and a lot less congested.

[SoFLGal]

If you're looking for a good rental income and it's strictly for investment purposes, Bradenton wouldn't be my first choice.

[gypsychic]

Originally Posted by SoFLGal

If you're looking for a good rental income and it's strictly for investment purposes, Bradenton wouldn't be my first choice.

I usually agree with you SoFLGal, but in this case I disagree. Bradenton is VERY up and coming these days. Have you visited downtown lately? It is starting to boom with new businesses. They will complete the new Riverwalk next year, plus the old "pink palace" is on it's way to being renovated into a new hotel. If I had money I would DEFINITELY be investing in Bradenton. There are a lot of nice areas to invest, and the crime is really being overblown on these forums. The crime almost all happens in the seedy, ghetto areas, just the same as Sarasota.

There are a lot better deals to be had in Bradenton. If I were investing or to move, I would try to buy on or near the river near downtown. If not that, then a neighborhood out west, off Manatee street going toward the beaches. If you are looking for something to rent out, there are plenty of nice subdivisions near the beaches, and I would look there. Great potential, as it is getting more and more difficult to rent right on Anna Maria these days.

OP, please don't just go by comments on the boards. I'm not speaking of SoFLGal here, she always posts GREAT information; but there are others who post how bad Bradenton is when the fact is they really know little to nothing of the area.

Good luck!

[SoFLGal]

Originally Posted by gypsychic

I usually agree with you SoFLGal, but in this case I disagree. Bradenton is VERY up and coming these days. Have you visited downtown lately? It is starting to boom with new businesses. They will complete the new Riverwalk next year, plus the old "pink palace" is on it's way to being renovated into a new hotel. If I had money I would DEFINITELY be investing in Bradenton. There are a lot of nice areas to invest, and the crime is really being overblown on these forums. The crime almost all happens in the seedy, ghetto areas, just the same as Sarasota.

There are a lot better deals to be had in Bradenton. If I were investing or to move, I would try to buy on or near the river near downtown. If not that, then a neighborhood out west, off Manatee street going toward the beaches.

OP, please don't just go by comments on the boards. I'm not speaking of SoFLGal here, she always posts GREAT information; but there are others who post how bad Bradenton is when the fact is they really know little to nothing of the area.

Good luck!

Hey no problem! That's what makes this board great--all the different ideas and opinions. I'm by no means saying Bradenton is a bad area for investment, I just think there are some better areas out there if you are looking strictly for an investment/rental.

I probably should have asked what cap rate the OP is looking to get. If the OP is fine with a 2%-7% ROI then I think Bradenton is fine. Not saying there aren't deals out there but there harder to find, IMO.

Here's an example of what I'm talking about. I have a duplex in Port Charlotte that I purchased for $30K and I put $10K into repairs. I have one side rented for $600 and the other for $550 (I could have easily gotten $700 for this side. I gave the guy a break since he's a great tenant). I'm making $1150 a month on a $40K investment.

Just so people can run some figures. The taxes on that duplex are $1,340 per year and insurance runs around $800 per year. I have great tenants in the duplex-disabled vets.

Another example is a home I'm closing on Wednesday. This home is actually a home I'm purchasing with my 14 year old daughter. She has saved up enough money to contribute half of the amount.The purchase price is $13K. It will need roughly $10K in repairs. It's a 3/1, so I'll be able to rent it for right around $700 per month, possibly a little more. So, $23K for an investment and $10K in repairs. Again, the ROI is much better then in other areas. It's usually well over 25% ROI.

I usually purchase a new home every six months or so. All of them are in the same area and the same price range. There are many, many places to chose from.

For the record, I have no problem going to collect the rent at any time of day from my tenants.

[Sunshine Rules]

It all depends on what your long term goals are in investing in real estate in our area.

If you're looking for cheap properties, North Port does have a lot of them due to the high number of foreclosures. When the local real estate market was heating up in 2003 and 2004, the escalating prices in Sarasota and Bradenton drove many first time home buyers and investors to North Port's market as an alternative. These were people buying with 100% financing (yes, even investors were getting 100% financing, crazy as it sounds). So when the market went bust, many of those buyers started walking away from their mortgages. About half of the foreclosure filings in Sarasota are in the North Port area.

Bradenton is more unique than Sarasota when it comes to neighborhoods. You'll find that going even a few blocks in one direction or another, especially within the city limits, can put you within a totally different neighborhood.

East of I75 is where you'll find a lot of newer construction neighborhoods with deed restrictions. Randy mentioned some of them. While Heritage Harbour and Lakewood Ranch have CDD fees, there are a lot of neighborhoods that do not. There are over 20 small, newer communities in the Ellenton - Parrish area, some still have new construction going on by various builders. Most do not have CDD fees but a few do. There would include zip codes 34211, 34212, 34221, 34222, 34219. You have neighborhoods such as Covered Bridge (there's been a lot of foreclosures there), Copperstone (CDD), Chelsea Oaks (gated), Creekside Preserve, Forest Creek, Old Mill Preserve, Sugar Mills, Harrison Ranch (CDD), Sheffeld Glen (no amenities), Country Meadows (there were some Chinese drywall issues in a few homes there), Bougainvillea Place (gated, maintenance free homes & villas).

Just west of I75, in the SR64 to University Parkway area, you'll find many neighborhoods built in the 1980's to brand new construction. These would include zip codes 34203, 34243 and 34201. Some of those communities were built during the early 2000's, so there has been a large number of foreclosures and short sales over the past 4 years, although the numbers are now dwindling down. Most of those communities do not have CDD fees and the HOA fees are typically under $600 a year. You have neighborhoods such as Regal Oaks, Silver Lakes, Sabal Harbour, Riomar, Lionshead, Briarwood, Fairfax, Creekwood, Tara, Woodbrook (brand new) to name a few. This is also where you'll find the Mote Ranch - Palm Aire neighborhoods that are sought after by buyers.

You mentioned NW Bradenton. The most popular zip codes in that area are 34209 and 34210, although part of 34205 is also popular with buyers because of neighborhoods such as Casa del Sol, Country Club Heights and Sandpointe Estates. There are a lot of well kept, older neighborhoods (1960's - 1980's built) in NW Bradenton that buyers seek out because they do not have deed restrictions or HOA fees. Those that do have HOA associations typically have lower fees. Neighborhoods in this area include Sagamore Estates, Century Estates, Cortez Estates, Village Green (very popular & voluntary HOA only $55/year), Cordova Lakes, Idle Acres, Woodmere Place, Harbour Woods, Crossings, Westwoods (no HOA), Palma Sola Village (HOA), Fairway Acres (no HOA), Harbor Shores (no HOA), Willow Woods (no HOA).

Some investors have been buying up cheapie homes (under $40,000) close to downtown Bradenton, off of Manatee Ave, in the Ware's Creek area. I've watched people try to redevelop that area off and on for over 20 years with mixed success.

There are a number of builders that have been starting new developments in Manatee county in the past 2 years but especially this year. Other companies are buying up tracts of land with the intent to build in the near future. These big developers do not make these decisions lightly and they obviously agree with gypsychic that Bradenton is up and coming.

[41mag]

we moved from venice a year ago found a short sale here in mill creek that we couldn't have built for half the price we paid,low hoa fees,mostly 1/2 acre properties, country like living 20 minutes to anna maria,10 minutes to university park,lower water bills,electric cheaper than fpl,very little congestion,noise,etc.lower taxes than sarasota county for comparables,good schools and crime here is very low. it's not for every one that wants to be by the gulf but insurance is cheaper and the peace and quiet is great.

[Avalon08]

Originally Posted by skaranam

I am planning to buy a property in Bradenton. This will be strictly for rental/investment property. People are very knowledgeble on this forum and I need your input. Properties on the west side of I-75 appears to be slightly older. So, there will be more maintenance involved. But this area is closer to the beach. Propertied east of I75 are newer but are away from beach. LWR had CDD which is another consideration. What are the other pro's and con's with these areas?

Are you talking about a seasonal or year-round rental? My mother has lived in Bradenton (34209) for 14 years and loves it. I love it as well! Why? Its proximity to the gorgeous-ness of Anna Maria Island and everything leading up to it -- the causeway, the dog beach, the view of Palma Sola Bay, and then ahhhh, the island itself. As soon as I arrive in Bradenton, I drive to the beach so I can enjoy the peace and beauty of a Gulf sunset. To me, that's the appeal of being in Florida and if I were renting, I'd want to be as close as possible to the island. Bradenton has many lovely neighborhoods of well-kept homes and condos. I can't speak to ROI, but I just wanted to give you the point of view of an "outsider" who says, "Go West, young man"...of I-75, that is!