Hi I’m just starting out. Was possibly looking to invest in Florida single or multi family. Was wondering if any one had any insight on what would be a better move in this market single family or multi and also short term rental or long term? And what areas I’m from Massachusetts and the house prices are too crazy here
Thanks for any information
@Joe Solari I've helped people find STR here in Sarasota. The laws on STR change from city to county so you definitely need to know where to look. A single family home with a pool should rent for $300 a night and have 60% occupancy year round. Those numbers are conservative.
Let me know if I can help!
Hey Joe. As of right now, small multifamily numbers just don't make a whole lot of sense. Landlords are demanding top dollar based off comps... cash flow barely even exists at their asking prices. I would go single family in today's market and luckily here in our area there are still properties coming on the market where numbers make sense. The rent to price ratio is phenomenal here and I'd say single family is a great way to get started.
Here in Jacksonville if the STR is rented out > 50% of the year you lose homestead exemption on taxes and the property has to get an STR Certificate from the city. The least trivial part of the Certificate is a Fire Marshall inspection and most of the rest is paperwork like business tax receipt, articles of incorporation for your LLC, copy of the lease, etc. Various fees will total up to about $350.
AirDNA's STR ratings show the Gulf Panhandle areas around Destin, and St Augustine to have the greatest investment worthiness.
SFH versus MFH is probably not as important as location: convenience to activities, vacation supplies, attractions, beaches, boat docks, and of course the view from a given STR can significantly boost its marketability. Sellers know that though so don't expect the high value locations to be cheap.
A woman I know has a beach condo in St Augustine and she shoots for 49% occupancy in order to keep homestead on taxes and get out of the Certificate requirement. When people come to rent her place she heads out in an RV, sticking close to places with WiFi as she has a remote work job.
@Joe Solari The markets mentioned above probably have stellar returns! Here on the gulf coast (Destin, panama city) the cities are smaller and strive on short term rentals. In an area like this you have less risk of them putting in laws that prevent STRs.
Best of luck!