Are you looking for a place to invest some money. The time might be right to buy some rental property for long term capital appreciation. Sarasota Florida real estate offers many rental opportunities where you can possibly earn a good long term rate of return. It is a great city for families and many safe, clean neighborhoods with homes that can possibly produce a positive cash flow.

Buying when everyone is selling can be a good long term investment strategy. Like Warren Buffett said, “Be greedy when others are fearful, be fearful when others are greedy.” Because of the recent real estate correction in price this might be a fabulous time to buy rental properties. Real estate runs in cycles and and the Sarasota market is showing signs of a bottom.

Right now, in Sarasota, Florida, you can buy a home in a safe, clean neighborhood for $75,000. It is not a palace on the water or anything but it is a safe place to raise a family. This segment of the market has been hit hard by the foreclosures. The percentage drop in home prices on the lower end of the market is greater than the higher end. For example, many $300,000 homes in 2005 are now selling for around $125,000 - $150,000. However, you don’t see a home worth $3 million in 2005 selling for $1,250,000 to $1,500,000 today.

Creating wealth with Sarasota Florida real estate

Assuming that Sarasota real estate bottoms soon and eventually starts to appreciate there will be great wealth created for those who bought recently. An investor who bought 5 homes for $75,000 might have a nice little nest egg in 20 years.

Imagine buying a rental property today for $100,000. If you achieved a modest 4% a year appreciation rate in 20 years that home would be worth $219,112. The great thing is that these homes can now be purchased with little to no negative cash flow every month.

Now imagine if you bought 5 or 10 of these homes over the next 5 years. If you paid off the mortgage on all of these homes over the next 20 years you would have a nice little portfolio of homes producing a comfortable cash flow every month and sizable estate.

Good Sarasota, Florida Neighborhoods

There are several great places in Sarasota, Florida to find these types of homes. A few of them include Sarasota Springs, Gulf Gate, South Gate, Greenbrook Village in Lakewood Ranch and Lake Sarasota. These neighborhoods are clean, safe and can be rented relatively easy. I would feel comfortable owning homes in any of these communities. Consider Sarasota real estate for making a quality long term rental investment.

View thousands of Sarasota FL real estate opportunities

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