Panama City vs Daytona Beach vs Tampa vs Cape Coral

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Panama City vs Daytona Beach vs Tampa vs Cape Coral

Renzo Figueroa
Member since 2024 · 8 posts · 6 votes

Hi all,

New out of state investor here!

I am looking to buy a turnkey property (SFH 3-bedroom) in Florida for cash flow. My max budget is $200k for a property (with 20% downpayment). I would appreciate it if you could give me some advice on which market would you prefer to invest: Panama City (not Panama City Beach), Daytona, Tampa or Cape Coral. I find that Tampa and Cape Coral are larger markets, but it seems that it is harder to find properties that cash flow. Happy to hear your advice!

Thanks,

2Reply
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Most Popular Reply

Chad Shultz
Real Estate Agent · East Central Florida · Member since 2021 · 121 posts · 94 votes
2y

Renzo,

Glad to see you here on BP.  I am a very active investor/realtor in the Greater Daytona area.  I ONLY work in real estate with investors, so if you need/want help, let me know.  There are many, many agents out there and 98% of them really have no idea about how investing actually works.  I put my investor customers' needs first, because I don't need to make a real estate paycheck to pay my bills.  With that said, to answer your question:  Cape Coral has been well over done.  For the past two years, or more, it has been about the hottest place in FL to invest.  Now that it is saturated, it is starting to fall off.  Lots of big investors went in, driving prices and now pricing is very high.  Many sellers are having to make huge price cuts to sell flips and/or new construction, so be careful there.

With your buying criteria, Daytona area is still a great market with strong numbers.  You should be able to find a decent property, if you can put in a little sweat equity.  However, finding a turn-key for $200k is not likely possible.  The places you will find for $200k won't make the rent rule, which should be a non-starter for you.  You will need patience and need to keep your eyes open.  I just recently sold a duplex property to an investor for $225k, which was bringing in $2800/mo, so you can find them occasionally.  Sorry, I don't know anything about Tampa or Panama City areas.

3Reply
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  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Renzo Figueroa Hey there only looking for cash flow or also appreciation and equity after a  while?

    2Reply
  • Renzo Figueroa
    OP
    Member since 2024 · 8 posts · 6 votes
    2y
    Quote from @John Mason:

    @Renzo Figueroa Hey there only looking for cash flow or also appreciation and equity after a  while?


     Hi John, thanks for your response. I am looking for cash flow.

    1Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    https://www.biggerpockets.com/forums/530/topics/1103777-ormo...

    https://www.biggerpockets.com/forums/12/topics/1111006-tampa...

    etc    ..

    1Reply
  • Jason Baker
    Investor · De Leon Springs, FL · Member since 2017 · 38 posts · 17 votes
    2y
    It's a tough market out here right now. I live in the Daytona Beach area & finding something turnkey for sale that will cash flow is very difficult, the prices are still too high. I run numbers daily and rarely do I find something that will cash flow nicely. I can't speak for Cape Coral, Tampa, or Panama City but I assume those markets are inflated too. Mostly what I see in your price range in my area are condos, tons of condos for sale. Lots of us are just in a holding pattern right now waiting for something to give. I'm currently working with a couple of other out of state investors looking to do the same thing you are. If you have any questions about properties in the Daytona area, I'm more than happy to help.
    2Reply
  • Obed Calixte
    Real Estate Agent · St Petersburg, FL · Member since 2019 · 321 posts · 182 votes
    2y

    The Tampa Bay area is more than likely not your market with those buying criteria.

    You will have to put meaningful sweat equity and be creative in your leasing (MTR, rent by room etc) to produce a 3bd SFH <200K purchase price that cash flows.

    Have you considered Jacksonville?

    2Reply
  • Chad Shultz
    Real Estate Agent · East Central Florida · Member since 2021 · 121 posts · 94 votes
    2y

    Renzo,

    Glad to see you here on BP.  I am a very active investor/realtor in the Greater Daytona area.  I ONLY work in real estate with investors, so if you need/want help, let me know.  There are many, many agents out there and 98% of them really have no idea about how investing actually works.  I put my investor customers' needs first, because I don't need to make a real estate paycheck to pay my bills.  With that said, to answer your question:  Cape Coral has been well over done.  For the past two years, or more, it has been about the hottest place in FL to invest.  Now that it is saturated, it is starting to fall off.  Lots of big investors went in, driving prices and now pricing is very high.  Many sellers are having to make huge price cuts to sell flips and/or new construction, so be careful there.

    With your buying criteria, Daytona area is still a great market with strong numbers.  You should be able to find a decent property, if you can put in a little sweat equity.  However, finding a turn-key for $200k is not likely possible.  The places you will find for $200k won't make the rent rule, which should be a non-starter for you.  You will need patience and need to keep your eyes open.  I just recently sold a duplex property to an investor for $225k, which was bringing in $2800/mo, so you can find them occasionally.  Sorry, I don't know anything about Tampa or Panama City areas.

    3Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    2y

    Hi @Renzo Figueroa, I know someone buying properties in the Tampa Bay area with a unique rental strategy that is grossing around $4200-4500 per month in rent based on long term rentals on properties around the 400k price point. They are putting about 20-25% down payment. Their all-in mortgage payment is around $3,000 per month. They are making some pretty good cash flow in today's market. Feel free to message me and I'd be happy to connect you. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5119 Reviews
    WebsiteView Page
    1Reply
  • Renzo Figueroa
    OP
    Member since 2024 · 8 posts · 6 votes
    2y
    Quote from @Obed Calixte:

    The Tampa Bay area is more than likely not your market with those buying criteria.

    You will have to put meaningful sweat equity and be creative in your leasing (MTR, rent by room etc) to produce a 3bd SFH <200K purchase price that cash flows.

    Have you considered Jacksonville?


     I am definitely open to other cities in Florida such as Jacksonville. Do you have any insights of that market?

    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    https://awning.com/vacation-rental-property-management/jacks...

    1Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    https://app.awning.com/a/airbnb-market-data/Jacksonville-FL

    1Reply
  • Renzo Figueroa
    OP
    Member since 2024 · 8 posts · 6 votes
    2y
    Quote from @Chad Shultz:

    Renzo,

    Glad to see you here on BP.  I am a very active investor/realtor in the Greater Daytona area.  I ONLY work in real estate with investors, so if you need/want help, let me know.  There are many, many agents out there and 98% of them really have no idea about how investing actually works.  I put my investor customers' needs first, because I don't need to make a real estate paycheck to pay my bills.  With that said, to answer your question:  Cape Coral has been well over done.  For the past two years, or more, it has been about the hottest place in FL to invest.  Now that it is saturated, it is starting to fall off.  Lots of big investors went in, driving prices and now pricing is very high.  Many sellers are having to make huge price cuts to sell flips and/or new construction, so be careful there.

    With your buying criteria, Daytona area is still a great market with strong numbers.  You should be able to find a decent property, if you can put in a little sweat equity.  However, finding a turn-key for $200k is not likely possible.  The places you will find for $200k won't make the rent rule, which should be a non-starter for you.  You will need patience and need to keep your eyes open.  I just recently sold a duplex property to an investor for $225k, which was bringing in $2800/mo, so you can find them occasionally.  Sorry, I don't know anything about Tampa or Panama City areas.


     Thanks for your response! That duplex was an amazing deal. If I am able to save more money for a larger downpayment I will reach out.

    1Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Renzo Figueroa Please make note



    The peak season for tourism and Airbnb stays in Jacksonville, Florida is typically in the summer months, from June to August, when visitors flock to the city's beaches. However, there is also a noticeable increase in tourists during the winter months, particularly around holidays and events.

    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    https://rabbu.com/airbnbs-for-sale/jacksonville-fl

    0Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    Hey Renzo, have you looked into other markets? 

    I moved from Florida to Columbus, OH. There are some great deals here. The market is on an excellent growth trend as well. It is now being forecasted as one of the fastest growing markets in the U.S. and prices are still relatively low. In this market, you can still pick up a rental in the higher cash-flow areas for a solid price. SFHs in these areas will go for around $100-$160k and $160-$220k for duplexes.

    [email protected]614-662-1652
    Reafco - Samuel Diouf528 Reviews
    WebsiteView Page
    1Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Renzo Figueroa Even Cincinatti is good

    0Reply
  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    2y

    Hi @Renzo Figueroa,

    To further clarify your questions regarding the Cape Coral market, unfortunately, your maximum budget will not allow a turnkey purchase with positive cash flow. Although we have seen significant changes in pricing over the recent years, one thing that hasn't changed is that we still aren't seeing positive cash flow out of single family homes with any kind of financing in place, specifically with long term renters in place. This was the case before prices started rising, and I expect that it always will be the case. With that being said, if you're looking to maximize a cash flow focused strategy, you're going to need to start with at least a duplex, which we have a great supply of in both Cape Coral and several other surrounding markets. Pricing between these two will be similar, although both currently exceed your current budget

    [email protected]850-259-2910
    Stetson Miller Realtor545 Reviews
    View Page
    1Reply
  • Obed Calixte
    Real Estate Agent · St Petersburg, FL · Member since 2019 · 321 posts · 182 votes
    2y
    Quote from @Renzo Figueroa:
    Quote from @Obed Calixte:

    The Tampa Bay area is more than likely not your market with those buying criteria.

    You will have to put meaningful sweat equity and be creative in your leasing (MTR, rent by room etc) to produce a 3bd SFH <200K purchase price that cash flows.

    Have you considered Jacksonville?


     I am definitely open to other cities in Florida such as Jacksonville. Do you have any insights of that market?


     That market has more inventory that better aligns with your criteria. You will need boots on the ground to get a better lay of the land however. 

    0Reply
  • Joseph Stern
    Investor · Tampa, FL · Member since 2020 · 287 posts · 152 votes
    2y

    Hey Renzo, the greater Tampa Bay area you can still find deals for 200k that will cash flow, just will have to look in some of the cheaper areas around the bay. Feel free to message and connect

    0Reply
  • Ricardo Hidalgo
    Real Estate Agent · Member since 2019 · 569 posts · 257 votes
    2y
    Quote from @Renzo Figueroa:

    Hi all,

    New out of state investor here!

    I am looking to buy a turnkey property (SFH 3-bedroom) in Florida for cash flow. My max budget is $200k for a property (with 20% downpayment). I would appreciate it if you could give me some advice on which market would you prefer to invest: Panama City (not Panama City Beach), Daytona, Tampa or Cape Coral. I find that Tampa and Cape Coral are larger markets, but it seems that it is harder to find properties that cash flow. Happy to hear your advice!

    Thanks,


     We just put a few investors under contract in the Fort Walton Beach area close to the 1% rule on rentals with immediate cashflow and value add under 200k! Fort Walton Beach is very consistent due to its military bases and constant rental demand. 

    0Reply
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