Multifamily unit investing in Daytona Beach, Florida.

7 Replies

for condos/apartments:
Condominium associations can purchase flood insurance coverage on a residential building under the Residential Condominium Building Association Policy. Under this policy, condominium associations can purchase up to $250,000 times the number of units or the replacement cost of the building, whichever is less. This way, coverage is provided for each unit without the burden of purchasing policies for each unit separately. Eligible buildings include garden apartment-type construction, town houses, row houses, and single-family detached buildings owned by the association, as long as 75% of the units are used for residential purposes. Residents of the individual units are then advised to purchase contents coverage separately-up to $100,000-to ensure that their personal property will be covered.

heres the data for rates on flood coverage in a high risk coastal SFR
http://www.floodsmart.gov/floodsmart/pages/premiumesttables_hrc_residential.jsp

and this link may help
http://www.pueblo.gsa.gov/cic_text/housing/natl-flood/insurance.htm

not that only certain zones require you to have coverage. In my city I can pull up the GIS map and show airel photos with flood zone risk areas overlays. If your building is located in a flood zone that begins with the letter A or V, you are in a high-risk area. If the flood zone begins with a B, C or X, you are in a lower-risk area

Florida WAS one of the hottest markets in the country, and many areas in Florida have now pulled back. so you have to be careful that you don't buy something as an "investment" and the value drops.

Datona Beach is an area that has "pulled back". It ranked 245th out of 381 cities monitored for appreciation rates last quarter. (381 being the worst!)

Fort Walton Beach was 374th!! (Yikes)

Ocala is looking good right now though sitting in 32nd place.

There are definitely better places in the country to invest.

Is this your first investment property? Are you planning to rent it out? Where do you live?

I subscribe to a service that tracks all housing sales in the US and measures growth and decline in housing values (updated quarterly). The information is based on data from the government. Over the past 30 years the data from almost every sale and resale in the country has been documented. It's a wonderful service.

I'm a Real Estate Broker in Daytona. We do property management and sell investment properties.

For those people that like statistics, properties that are over 50 years old are very hard to insure, properties within about a mile of the ocean are much more expensive to insure than properties further away, 54% of the Daytona Beach population are tenants, the median household income in the Daytona MSA is about $35000 and we have a very small middle class(1/3 to 1/2 of expenses go to housing, thats $1000 to $1500 a month @ median income with median home prices around $250k 30yr mtgs are $1600+), my company has a 3% vacancy rate at any give time throughout the year ;)

Owning real estate for more than 5 years makes sense so long as you:
properly maintain it
get market rent
be reasonable with financing (and refinancing)
buy according to your appetite

That being said, Daytona Beach has a wonderful inventory with lots of deals. BIG buyer's market right now. If you own real estate for 10-20 years, who cares about how good or bad the market is when you purchase it?

Comparing Ocala to Daytona Beach is kind of wierd. Ocala doesn't have any draw other than its a decent sized city with a whole bunch of country around it. Markets like Orlando and Daytona have tourism which demands a lot of blue collar housing as well as colleges which demand a lot of student housing.