best areas in Florida for investment

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best areas in Florida for investment

Jake Warren
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
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. 

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  • 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)

     Well I need to change my comment as I spoke with my buddy who has a huge RE business in the cape. I posted why in another post, I will try and find it as I do not want to retype it all LOL . But the gist was high insurance and overpriced. It would be very difficult to get double digit net caps 

    1Reply
  • Mark MunsonBusiness Member
    Lender · Orlando, FL · Member since 2022 · 440 posts · 300 votes
    3y

    Hi @Jake Warren

    I own a mortgage brokerage that solely focuses on real estate investors. I'd echo the above, buy along the I4 corridor between Orlando and Tampa. I also would look at places like Ocala, lot's of new builds and future appreciation. I recently bought a 2019 SFR in Ocala, my business partners and I just had to change the carpet and paint, and we were able to get it $60k under value (off-market marketing). It cash flows roughly $600 with a DSCR loan. Feel free to reach out if you need any advice.

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  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    It is interesting to watch the Real Estate industry develop in smaller cities around the country. The opening of offices by some of the bigger national PM companies signals that they are recognizing the potential of these expanding markets. With larger institutional investors conducting market research, it's clear that Real Estate opportunities are abundant and worth investing in. It's an exciting time for Real Estate investors!

    [email protected]832-889-5607
    1Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    Following! I'm interested in Florida. How is Orlando area for investors?

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    Or Tampa Bay?

    0Reply
  • Gaurav Mehta
    New to Real Estate · San Jose, CA · Member since 2017 · 91 posts · 23 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 


     Hey Bob. What other markets would you recommend. I am looking to make an investment (Single or Multi Family) with the intent of long term appreciation. Have a few single family homes in Bay Area but now looking outside. Any recommendations?

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Gaurav Mehta:
    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 


     Hey Bob. What other markets would you recommend. I am looking to make an investment (Single or Multi Family) with the intent of long term appreciation. Have a few single family homes in Bay Area but now looking outside. Any recommendations?


     100s of investors from Ca  ( and around the world )  have been buying up all of the Cleveland markets for years . They used to get 20% +++ net caps based on cash purchase with all in pricing of 40- 65k. Now 10% or so with all in pricing of about 100k, still good. Its all about knowledge.

    All the best  

    0Reply
  • Griffin Pratt
    Wholesaler · St. Augustine, FL · Member since 2022 · 36 posts · 24 votes
    3y

    Tampa has good opportunity for cashflow with HIGH appreciation potential in the next 5-10yr. Feel free to reach out if you'd like to discuss more in depth as to why.

    Ocala has plenty of good cashflow opportunity and no shortage of supply, should see some significant growth in the next few years due to its high traffic location and increasing industry.

    0Reply
  • Eric Tan
    Rental Property Investor · Park Ridge, IL · Member since 2016 · 67 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? 


     thanks for sharing. other than jacksonville, which type of property is best in the other 4 areas for cashflow?

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  • Drew C Grossman
    Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
    3y
    Quote from @Eric Tan:
    Quote from @Drew C Grossman:

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


    What are yours specific goals for the investment? 


     thanks for sharing. other than jacksonville, which type of property is best in the other 4 areas for cashflow?

    @Eric Tan For long term rental, I would target newly built or turnkey single family homes. (or something you can make turnkey).

    Generally speaking for market deals in these areas, the Cash flow will likely be better with single family.

    There are also turnkey builders that build and manage sell duplex(s) and quad(s) in these areas but in most cases prices are still pretty high leading to lower cash flow. They sell for a higher $ per sqft compared to single family because of the scarcity and the ability to trade off cap rates (which have compressed a ton over the past few years) leading to higher prices. Florida as a whole has a lack of small multi family (Duplex/triplex/quad) let alone newly built mostly because of zoning. Multi family land is valuable.

    Because of this dynamic and with build costs leveling out, I am currently building some Duplexes. Im also considering renting one unit as a medium term 30-90 days to a professional tenant but I need to consider all things. Up to this point, the long term rental approach has worked well for me but I am interested in learning more about medium term rentals.'

    Do you have specific goals for this area?

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3y

    @Jake Warren you're going there to buy- without doing any prior research?

    Prepare to lose money...

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  • Jake Warren
    OP
    New to Real Estate · Member since 2022 · 26 posts · 14 votes
    3y
    Quote from @Drew Sygit:

    @Jake Warren you're going there to buy- without doing any prior research?

    Prepare to lose money...


    no I'm down here to visit and also look into the markets and potentially buy if I found the right deal that makes sense. that's why I am asking for advice.

    1Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    3y

    @Tom D. The main reason people come to Cape Coral is because we have more canals than anywhere else in the world. If you don't buy a property on the canal then you are risking lower appreciation and lower returns. 

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  • Tom D.
    Member since 2021 · 13 posts · 8 votes
    3y

    Adam - my comments were through the lens of an STR investor. My wife and I would love to have a home with a canal in Cape Coral. However, I have been told from other STR investors that paying more for a home with a canal doesn't cash flow as well as a home without. Simply because you are paying for a perk that is never used by an AirBnB'r. They would find lower rates down the street from a home without the canal from an owner that has a lower mortgage at their disposal. I get it - long term appreciation - a home on the canal will have higher equity in the end however not as attractive for an STR investor.

    1Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    3y

    @Tom D. You have been advised wrong... I was also speaking through the lens of an STR investor. On STR's in the Cape, we get $450/night for canal homes and $250/night for dry lots. The book for a higher rate, have less vacancy, and the guests stay longer. Again, people come here for the canals... this is the draw.

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  • Tom D.
    Member since 2021 · 13 posts · 8 votes
    3y

    I am glad to hear that.  To clarify, it wasn't their advice - it was their experience as investors who owned both types in Cape Coral.  One of them said that he could only count two instances when his renters used the dock in one year.  Folks must be paying more for the view than for actually using a dock.  I can't imagine someone would use a dock if they were staying less than a week.  I certainly wouldn't haul a boat down from Indiana unless I was staying at least a week.  AirDNA will confirm either way but I am glad to hear how your experience goes because that provides much greater optionality for the investor.

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3y

    @Jake Warren you should have done all this BEFORE you traveled there.

    How will know a deal when you see one?

    More importantly, how will you AVOID being scammed on something that is NOT a deal?

    [email protected]248-209-6824
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  • Nolan C.
    Investor · Tampa, FL · Member since 2019 · 22 posts · 12 votes
    3y

    @Jake Warren

    Local agent here in Tampa and wholesale in Jacksonville, Orlando and Tampa markets.

    Many good points in previous replies, Tampa, st. Pete and Clearwater are all still very hot markets however investors are having an easier time negotiating/getting deals under contract with recent market shift.

    I’m seeing a lot of regular folks getting priced out of these markets and investors are pushing north/south to find LTR deals that work, places like holiday, new port richey, Brandon/Bradenton.

    Cap rates are still relatively low for multifamily and you’d need to look at value add plays to get above a 7-8 cap.

    If you end up looking in the Tampa area send me a DM and I can help in your search.

    Best of luck

    2Reply
  • Ruchit Patel
    Bay area, CA · Member since 2021 · 383 posts · 306 votes
    3y

    Cape Coral, North Port, Poinciana, Ocklawaha.

    ( I own in Cape Coral, and in Ocklawaha.)

    1Reply
  • Sara Levy-Lambert
    USA · Member since 2022 · 879 posts · 109 votes
    3y

    According to the top result on Google it's Orlando and Jacksonville
    https://awning.com/post/florid...

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y

    Why not airbnb? I always travel down there for vacation and rent one

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