Ideas on where to invest in Florida?

40 Replies

Hello all,

I have been investing in the Cleveland, Ohio area for the last 7 years - it is a great market, but I am looking to diversify. I will be in Florida in about a month for a week and would love to do a little research now so that when I am there I can pick out where I would like to invest and possibly, if fortunate enough, find a property to invest in. I am looking for a property that can serve as a good vacation rental - would be popular year round so that I won't have to fret too much about vacancies - and one that I can use myself when I visit the area (my family and I go there once every one or two years - love Naples, Orlando for the kiddos, Jacksonville, Fort Lauderdale, Miami), a community that is still growing and a property that can cash flow as a vacation rental and appreciate in time as well. The Community's input would be greatly appreciated!!

Nada

Nada,

The Jacksonville beaches area (Atlantic Beach, Neptune Beach, Jax Beach) are all wonderful and popular areas, without the crowds and craziness of most touristy areas. Check them out on Google maps and consider. My wife is licensed here and would be more than happy to feed you info in form of listings to get you familiar with the current market if you'd like. Good luck!

Gene

I agree with EUGENE KEMP.  I also recommend St Augustine and Ponte Vedra  as a not so busy touristy place. Fernandina Beach as well. Especially St Augustine, for what you are looking to do. St, Augustine being the oldest city has year round traffic without the madness of Orlando. And there is plenty of newer construction as well.

Theme parks and beaches...that is what vacation rentals are all about in Florida.  Sarasota, Naples and St Pete to Clearwater (beaches) are great vacation rental markets.  Though, there is some noise in the more affluent parts to limit or ban vacation rentals from certain submarkets/townships, etc.  Neighbors complain about noise and turnover....government complains about a avoiding hotel tax.  It is worth checking with the local realtor you are working with to see if the neighborhood is hostile to vacation rentals.  

Definitely be sure to ask your realtor where in the area you can buy a "vacation" rental. I'm almost positive it's restricted in Orlando itself, and you would need be looking at areas more in Kissimmee, Buena Vista, Celebration etc. I'm not a realtor, I just work for an accommodation website. I know we deny applications for houses in Orlando. I don't know the specifics because I'm not in the department that processes those applications. Disney is not technically in Orlando. it's in Lake Buena Vista. However, Sea World and Universal is in Orlando.

I just found a post made yesterday. It came up in my keyword alerts as I'm going through. Maybe you can contact him.

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@Chris Romany

I am a Realtor as well as an Investor based right here in Orlando. I just wanted to underscore Leslie's comments made earlier; she is right on the money! Short term rentals are not approved for many areas of Orlando (including some of those near Disney); further, for some of the gated communities that are approved, the HOA fees and property taxes can be onerous, so make sure you check over all your numbers prior to investing in one of these units.

As far as an environment for vacation rentals, you probably can't beat the Orlando market. We had over 62 million visitors in 2014, and it may be even higher in 2015.

Best of luck to you.

@Kaizen Christian

@Nada Mohamed

In my opinion kaizen is correct. There are plenty of properties in these areas to choose from. I own a long term rental in Kissimmee, we lived there for 6 months and we go to Disney or universal 10-20 times a year. Stay close to irlo Bronson Blvd or international Blvd.

If your looking at the west coast then Naples is great if you have A Lot of money to burn. If not then start looking north of there. There are plenty of vacation rentals in Cape Coral and the prices aren't that bad.

Originally posted by @Adam Bartomeo :

@Kaizen Christian

@Nada Mohamed

In my opinion kaizen is correct. There are plenty of properties in these areas to choose from. I own a long term rental in Kissimmee, we lived there for 6 months and we go to Disney or universal 10-20 times a year. Stay close to irlo Bronson Blvd or international Blvd.

If your looking at the west coast then Naples is great if you have A Lot of money to burn. If not then start looking north of there. There are plenty of vacation rentals in Cape Coral and the prices aren't that bad.

 Thank you Adam, do you find it profitable at year's end after all is said and done? How competitive is the short term vacationing rental sector if you know? Should I expect a lot of vacancy? I do not plan on vacationing in Florida as much as you since I am out of state - probably a couple of weeks a year so short term rental is definitely what I am looking for.

Nada

Originally posted by @Peter Davis :

I agree with Adam.  Cape Coral is a good value and there's a strong demand for rentals.

 Thank you Peter, are there certain times of the year that Cape Coral is busy or is it busy year-round for tourism? Are there restriction for Cape Coral when it comes to short term rentals?

Nada

Originally posted by @Kaizen Christian :

Definitely be sure to ask your realtor where in the area you can buy a "vacation" rental. I'm almost positive it's restricted in Orlando itself, and you would need be looking at areas more in Kissimmee, Buena Vista, Celebration etc. I'm not a realtor, I just work for an accommodation website. I know we deny applications for houses in Orlando. I don't know the specifics because I'm not in the department that processes those applications. Disney is not technically in Orlando. it's in Lake Buena Vista. However, Sea World and Universal is in Orlando.

I just found a post made yesterday. It came up in my keyword alerts as I'm going through. Maybe you can contact him.

============================================

https://www.biggerpockets.com/forums/530/topics/26...

@Chris Romany

I am a Realtor as well as an Investor based right here in Orlando. I just wanted to underscore Leslie's comments made earlier; she is right on the money! Short term rentals are not approved for many areas of Orlando (including some of those near Disney); further, for some of the gated communities that are approved, the HOA fees and property taxes can be onerous, so make sure you check over all your numbers prior to investing in one of these units.

As far as an environment for vacation rentals, you probably can't beat the Orlando market. We had over 62 million visitors in 2014, and it may be even higher in 2015.

Best of luck to you.

 Thank You Kaizen for your input. Can you suggest particular areas where short term rentals are available? I will keep my eye out for that when searching for sure.

Nada

Hi Nada,

"Season" which is when the snowbirds come south typically runs from Oct/Nov to April. Cape Coral is also seeing a lot of foreign buyers/renters especially from Germany, Switzerland and Canada.

There are no restrictions on renting a single family home but many condo communities have restrictions on the number of leases per year as well as minimum days per lease.

From experience with the international tourist industry in cape coral, isn't the yacht club area the go to? I know many europeans like to go there for easy access to boating etc.

St.Augustine is the oldest city tourist attraction with beaches as well..look for Antastasia and Crescent beach in St Augustine..if you want emerald waters for a decent price go towarda Panama City beach, Navarre, Ft.Walton Beach has an air force base and emerald ocean

I can only speak for the Cape Coral area. Over the last two years there have been ZERO vacancies during peak season. At least this is what the local media, news stations and realtors tell me. There is compeition but the we are in need of new housing here. There aren't enough properties. Because of the crash (Cape Coral was one of the hardest hit) a lot of builders are ramping up very slowly. There is a house going up next to mine, across the street and three houses down.

I am trying to get some vacation rentals going but my main focus has been flips and long term. I have a property that I am closing on in a few weeks that would make a great vacation rental. I'm trying to get a few folks to come in with me.

Originally posted by @Adam Bartomeo :

I can only speak for the Cape Coral area. Over the last two years there have been ZERO vacancies during peak season. At least this is what the local media, news stations and realtors tell me. There is compeition but the we are in need of new housing here. There aren't enough properties. Because of the crash (Cape Coral was one of the hardest hit) a lot of builders are ramping up very slowly. There is a house going up next to mine, across the street and three houses down.

I am trying to get some vacation rentals going but my main focus has been flips and long term. I have a property that I am closing on in a few weeks that would make a great vacation rental. I'm trying to get a few folks to come in with me.

 Hi Adam,

I have a good friend of mine who owns a property management and vacation rental company in cape coral. Should you be interested, let me know Id be happy to pass on some information.

have a great day

Originally posted by @Nada Mohamed :
Originally posted by @Peter Davis:

I agree with Adam.  Cape Coral is a good value and there's a strong demand for rentals.

 Thank you Peter, are there certain times of the year that Cape Coral is busy or is it busy year-round for tourism? Are there restriction for Cape Coral when it comes to short term rentals?

Nada

 Hey Nada - I've lived in Cape Coral for about a year and a half now and have a couple family friends that own vacation rentals in Cape (5+ years).  The average occupancy as quoted from their management company's whole book of business in the city is 32 weeks.  I've crunched the numbers on several "affordable" FL areas and the only one that appears to make any sense is near Disney where people visit year round but demand from buyers/investors is also very high.  Good luck with a seasonal rental in FL in the summer!

Originally posted by @Michael Seeker :
Originally posted by @Nada Mohamed:
Originally posted by @Peter Davis:

I agree with Adam.  Cape Coral is a good value and there's a strong demand for rentals.

 Thank you Peter, are there certain times of the year that Cape Coral is busy or is it busy year-round for tourism? Are there restriction for Cape Coral when it comes to short term rentals?

Nada

 Hey Nada - I've lived in Cape Coral for about a year and a half now and have a couple family friends that own vacation rentals in Cape (5+ years).  The average occupancy as quoted from their management company's whole book of business in the city is 32 weeks.  I've crunched the numbers on several "affordable" FL areas and the only one that appears to make any sense is near Disney where people visit year round but demand from buyers/investors is also very high.  Good luck with a seasonal rental in FL in the summer!

 Thanks for the input, the more I do my own research, I find that Orlando may be the best option as low vacancy is very important to me.

Since you will be in the Orlando area, You could easily check out Cocoa beach and Cape Canaveral NASA areas...and also Universal parameters and the other big theme park parameters... It would not be too far to search Daytona Beach areas. The actor John Travolta had a home in an afflluent aviation fly in community there in Daytona.