best areas in Florida for investment

New to Real Estate · Member since 2022 · 26 posts · 14 votes

I am heading to Florida for a month and would like to close on a deal if I can find the right one. what's the best areas for a rental to buy in for a LTR.

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Phillip AustinPro Member

Property Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes

Tampa and Orlando corridor.

The bigger national PM companies are all starting to open up offices in those surrounding areas. These companies partner with larger institutional investors who spend a significant amount of money in market research. So, I pay close attention to where they're going.

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Juan Hasbun
Lender · Boca Raton, FL · Member since 2020 · 9 posts · 3 votes
3y
Ocala, Tampa, Orlando, Lehigh Acres, West Palm Beach
3 Reply
Samuel L.
Investor · Orlando, FL · Member since 2021 · 57 posts · 22 votes
3y
I am in Orlando and the market for LTRs can be good if you are looking in the right areas. What brings you to FL from Ontario? Safe travels!
1 Reply
Jake Warren
OP
New to Real Estate · Member since 2022 · 26 posts · 14 votes
3y
Quote from @Samuel L.:

I am in Orlando and the market for LTRs can be good if you are looking in the right areas. What brings you to FL from Ontario? Safe travels!

visiting family down there and have been wanting to get into the market down there. prices back in Ontario just seem to high to be able to get into the market.
2 Reply
Drew C Grossman
Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
3y
Ocala, parts of Jacksonville, Palm Coast, Deltona, DeLand

What are yours specific goals for the investment?
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Jake Warren
OP
New to Real Estate · Member since 2022 · 26 posts · 14 votes
3y
Quote from @Drew C Grossman:

Ocala, parts of Jacksonville, Palm Coast, Deltona, DeLand

What are yours specific goals for the investment?

goals I would like to reach are long term appreciation and cash flow would be great.
1 Reply
Phillip AustinPro Member
Property Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
3y
Tampa and Orlando corridor.
The bigger national PM companies are all starting to open up offices in those surrounding areas. These companies partner with larger institutional investors who spend a significant amount of money in market research. So, I pay close attention to where they're going.
6 Reply
Tyler GibsonBusiness Member
Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
3y
I would say Central Florida has many great opportunities. Others on this thread listed most of the cities here in Central Florida.
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Joshua Black
New to Real Estate · Cleveland, OH · Member since 2023 · 6 posts · 12 votes
3y
I know a lot of people who have responded to this question are more qualified than I am, so I will only speak from what I've seen over the years. My wife and I are from Ohio, and have been vacationing in Clearwater for decades. It has grown tremendously from year to year, so I would say that the whole Tampa area would be a nice place to invest. I think it also depends on what you plan to do with the property. We rent an AirBNB on the beach from a gentleman who used to own his own successful dental practice, and now he does AirBNB full time. He says he loves it and can't imagine doing anything else. Anyway, just my two cents. Best wishes in your search!
2 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Jake Warren:

I am heading to Florida for a month and would like to close on a deal if I can find the right one. what's the best areas for a rental to buy in for a LTR.

You can get much higher returns in other markets, But if you are only wanting FL then Cape Coral
2 Reply
Jossalyn Wallace
Real Estate Agent · Destin, FL · Member since 2019 · 116 posts · 111 votes
3y
Hi Jake!
I live in the FL Panhandle so I am definitely partial but we have awesome rental markets here. I would consider Panama City, Laurel Hill (areas around Tyndall Air Force Base), Navarre, Mary Esther, Fort Walton, Crestview, and Niceville (areas around Eglin and Hurlburt Bases). We also have very strong MTR/STR in areas like Destin, Panama City Beach, Miramar Beach, 30A. There are a bunch of medical offices around in addition to the military and the tourism so you really can't go wrong. Our appreciation has been pretty outstanding because of the growth that is happening.
I can't speak personally to any other locations in Florida but have heard good things about Jacksonville/Tampa areas. Happy house shopping and let me know if I can help with anything!
2 Reply
Don M.
Member since 2021 · 135 posts · 203 votes
3y
Quote from @Bob S.:

Quote from @Jake Warren:

I am heading to Florida for a month and would like to close on a deal if I can find the right one. what's the best areas for a rental to buy in for a LTR.

You can get much higher returns in other markets, But if you are only wanting FL then Cape Coral

I agree with Cape Coral. Deals to be found, but high rental demand and strong rents (even more so post-Hurricane Ian)
1 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Don M.:

Quote from @Bob S.:

Quote from @Jake Warren:

I am heading to Florida for a month and would like to close on a deal if I can find the right one. what's the best areas for a rental to buy in for a LTR.

You can get much higher returns in other markets, But if you are only wanting FL then Cape Coral

I agree with Cape Coral. Deals to be found, but high rental demand and strong rents (even more so post-Hurricane Ian)

Yes this is what I hear, I may head down there, old, buddy/ client has about 400 there and said its strong.
2 Reply
David PierceBusiness Member
Property Manager · Deland, FL · Member since 2019 · 71 posts · 28 votes
3y
Good time to scout out areas. But I am pretty sure rents and prices are going to drop...
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Stetson MillerBusiness Member
Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
3y
@Jake Warren I can second both Lehigh Acres and Cape Coral. If you're looking for a stricter cash flow market, Lehigh would be the better option between the two. Both currently offer great supply and availability for purchase, as well as high rental demand and low vacancy
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Samuel L.
Investor · Orlando, FL · Member since 2021 · 57 posts · 22 votes
3y
As @Bob S. said, there are some good deals in Cape Coral, depending on the location. Many sections of the Cape Coral metro area (near the River & SW Cape) have had really high appreciation which is great because they returned some of the highest returns out of all US metro areas in 2022. The high appreciation, however, has priced out some investors. North Cape has a much more reasonable price point.

The other question is whether job growth and migration will be able to sustain Cape Coral's growth over the long run. Something to consider: Cape Coral was one of the hardest hit cities in the 2009 housing crash.

Cape Coral is my hometown <3! Currently living and working in Orlando.
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Tom D.
Member since 2021 · 13 posts · 8 votes
3y
Quote from @Don M.:

Quote from @Bob S.:

Quote from @Jake Warren:

I am heading to Florida for a month and would like to close on a deal if I can find the right one. what's the best areas for a rental to buy in for a LTR.

You can get much higher returns in other markets, But if you are only wanting FL then Cape Coral

I agree with Cape Coral. Deals to be found, but high rental demand and strong rents (even more so post-Hurricane Ian)

I have spoken to others about Cape Coral and read that they advise to find neighborhoods without HOAs (I guess they exist) and buy a home without spending the extra 150K for the canal. They said the numbers are much better because no one ever brings a boat. Thoughts?
1 Reply
Joseph BeilkeBusiness Member
Real Estate Agent · Palm Coast, FL · Member since 2018 · 363 posts · 243 votes
3y
@Jake Warren

PM sent about Palm Coast and how it is very unique and different to many other places in FL. Also @Drew C Grossman. has some great opportunities in Marion Oaks. I have personal met with him and his projects are on my radar too. Would love to meet you when you visit and show you around.
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Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
3y
@Jake Warren Plenty of great areas mentioned already. Many variables to your goals... do you plan on building a portfolio in Flordia..look more long term metrics if you do, not just finding a deal now.
Insurance is plaguing the state right now, so IMO, I would stay away from anywhere near the coasts and really vet the property for 4 point inspection items as providers are getting really tough on binding policies.
Another thing to consider is financing. It looks like you are from Canada and that's 30% down with different underwriting guidlines, so be ready for that too. If you need a couple recommendations for mortgage brokers let me know.
Best of luck to you!
3 Reply
Samuel L.
Investor · Orlando, FL · Member since 2021 · 57 posts · 22 votes
3y
Always great insights from @Shawn McCormick!
1 Reply
Carlos JulioPro Member
Rental Property Investor · Cape coral · Member since 2020 · 55 posts · 30 votes
3y
1 Reply
Carlos JulioPro Member
Rental Property Investor · Cape coral · Member since 2020 · 55 posts · 30 votes
3y
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Don M.
Member since 2021 · 135 posts · 203 votes
3y
Quote from @Tom D.:

Quote from @Don M.:

Quote from @Bob S.:

Quote from @Jake Warren:

I am heading to Florida for a month and would like to close on a deal if I can find the right one. what's the best areas for a rental to buy in for a LTR.

You can get much higher returns in other markets, But if you are only wanting FL then Cape Coral

I agree with Cape Coral. Deals to be found, but high rental demand and strong rents (even more so post-Hurricane Ian)

I have spoken to others about Cape Coral and read that they advise to find neighborhoods without HOAs (I guess they exist) and buy a home without spending the extra 150K for the canal. They said the numbers are much better because no one ever brings a boat. Thoughts?

Surprisingly, the majority of Cape Coral residences are not in HOA (although there are communities that exist).
I would say it's not totally black and white, but in general when discussing LTR, I would agree. The premium price tag on saltwater canals would be hard to justify in terms of rents.
In terms of long-term appreciation or using the property as a STR, it could be a different story.
Just my opinion with my limited experience, but @Peter Davis and @Stetson Miller are two people with much more experience in the area.
3 Reply
Stephen Dispensa
Real Estate Professional · Tampa, FL · Member since 2015 · 176 posts · 252 votes
3y
I'm based in Tampa and work with investors regularly as a broker/property manager/project manager. I still like small to medium multifamily in our market IF you're willing to make investments in the property. The opportunity here is mainly in value add. You need to be willing to invest in renovations and turning over tenants to get properties in this market to cash flow at a decent level. However, we've had great appreciation year over year even before the most recent boom in 2020.
0 Reply
Samuel L.
Investor · Orlando, FL · Member since 2021 · 57 posts · 22 votes
3y
It's good to hear about some job growth in the Cape. The largest employers with high paying jobs in SWFL seem to be more in the South Fort Myers & Estero area. Lee Health, Arthrex, Gartner, Hertz, & Chicos.
1 Reply
Avery Gilmer
Investor · Phoenix, AZ · Member since 2013 · 193 posts · 37 votes
3y
@Bob Stevens what other markets?
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