Real Estate Broker and Attorney · Durham, NC · Member since 2015 · 74 posts · 73 votes
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!!
Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
10y
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.
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.
The areas around Kissimmee are great for vacation rentals. There has been lots of new construction out there over the past 7-8 years. Houses with pools and great amenities that are closer to the parks work best. Golf communities that are an easy commute to the parks are good options as well.
Thanks for your input, can you recommend any specific subdivisions? Are there any to steer clear from?
Nada
Nada,
I would stay clear of going into Haines City, which borders Davenport to the south and east. Plenty of great places North of I-4, which they are developing heavily and expanding Highway 27 from 2->3 lanes going each direction. Also, if you go a bit further north to 192 & 429, that's restaurant row and a very touristy area -- and pretty much on Disney property. This whole region was built with rentals in mind, so most of the communities are already setup to support this model and are fairly clean / safe.
The only catch down here I've found are the HOA Fees. In a number of cases, there is the HOA fee for the subdivision, but usually the "Gated" community has a Master which has an HOA fee on it as well. I've been noticing a lot of listings this way don't include the master.
If you happen to have someone who can go on the house and is 55+, there are even more options for even nicer communities in this region.
If you feel you might want to use the house a longer term rental, Lake Davenport Estates on Florence Villa Grove Road is a nice little community (not gated). It sits right next to a high end park with several football and soccer fields; all built with artificial turf. There was a house in there which ended up on our final list to buy a few years ago; the park was a big feature for us and could be a draw to a long term family with kids. I take my son there a lot.
Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
10y
@Nada Mohamed if you decide on the beaches in the Tampa Bay Area I know a company locally that is managing your property as an Airbnb. If you are looking for the Orlando market you should listen to episode 82 of TheRELoop podcast by @Gavin Welch.
Real Estate Broker · Lakeland, FL · Member since 2011 · 305 posts · 181 votes
10y
FYI, short-term (weekly) rentals are prohibited in Orange County (Orlando), be aware of that if you buy a property there for short term rental. The properties that rent best for short-term are typically 5 to 6 bedrooms and 3 to 4 baths and must have a pool. Typically, the garages include pool table and ping pong tables..
There are some great properties with great short-term rental histories available, some of them even include bookings already.
If the short-term market is something you are looking into, do your research, because most of these owners only BREAKEVEN!!! With that being said, some do really well, but these owners spend a lot of time managing and marketing the property on top of what the management company provides.
Thanks for your input, can you recommend any specific subdivisions? Are there any to steer clear from?
Nada
Nada,
I would stay clear of going into Haines City, which borders Davenport to the south and east. Plenty of great places North of I-4, which they are developing heavily and expanding Highway 27 from 2->3 lanes going each direction. Also, if you go a bit further north to 192 & 429, that's restaurant row and a very touristy area -- and pretty much on Disney property. This whole region was built with rentals in mind, so most of the communities are already setup to support this model and are fairly clean / safe.
The only catch down here I've found are the HOA Fees. In a number of cases, there is the HOA fee for the subdivision, but usually the "Gated" community has a Master which has an HOA fee on it as well. I've been noticing a lot of listings this way don't include the master.
If you happen to have someone who can go on the house and is 55+, there are even more options for even nicer communities in this region.
If you feel you might want to use the house a longer term rental, Lake Davenport Estates on Florence Villa Grove Road is a nice little community (not gated). It sits right next to a high end park with several football and soccer fields; all built with artificial turf. There was a house in there which ended up on our final list to buy a few years ago; the park was a big feature for us and could be a draw to a long term family with kids. I take my son there a lot.
Thanks for the details Andrew!! You have been extremely helpful!
@Nada Mohamed if you decide on the beaches in the Tampa Bay Area I know a company locally that is managing your property as an Airbnb. If you are looking for the Orlando market you should listen to episode 82 of TheRELoop podcast by @Gavin Welch.
I will definitely listen to the podcast, thank you Adrian!
FYI, short-term (weekly) rentals are prohibited in Orange County (Orlando), be aware of that if you buy a property there for short term rental. The properties that rent best for short-term are typically 5 to 6 bedrooms and 3 to 4 baths and must have a pool. Typically, the garages include pool table and ping pong tables..
There are some great properties with great short-term rental histories available, some of them even include bookings already.
If the short-term market is something you are looking into, do your research, because most of these owners only BREAKEVEN!!! With that being said, some do really well, but these owners spend a lot of time managing and marketing the property on top of what the management company provides.
Thank You Gavin! I obviously have a lot of research to do, and will start compiling a list of questions to ask realtors/developers while I am there. I have seen a couple of short-term rentals for sale that have rental histories and bookings through mid year - this may be the only way to go if one is looking to avoid too much risk . . . lots of work to do :)
Investor · Boca Raton, FL · Member since 2015 · 58 posts · 20 votes
10y
Over 1000 people move to Florida each day! Why? Taxes, Weather, and recreation. Orlando has the brightest future for relocation in business since it has theme parks, 2nd largest college population in the state, and a lot of tech as a result of Lockheed Martin and NASA. Rentals are strong for off campus residents, and weekly rentals abound in the park areas. Most other areas of the state restrict rentals to 3 month or more minimums for seasonal. Otherwise , annual rentals are stable and attractive almost any area in the state.
I live in Boca Raton. Its the weather! Average year round temp is 75 degrees, it is sub-tropical, no frost , ever! 114 golf courses in Palm Beach County, 30 miles from Miami ( very international) , 3 deep water ports, 3 international airports, almost a suburb of the tri-state are. Many Northeasterners use the east coast while Chicago and Cleveland go tot he west. I have 30+ years real estate experience in the Southeast and 10+ years in Orlando. I'd like to apply for the opportunity to be your source for Florida Real Estate.
Orlando, FL · Member since 2014 · 93 posts · 35 votes
10y
Nada,
I specialize in helping Investors locate buy/hold properties in Central Florida, and am based in Orlando, Fl. Orlando is much more than a tourist destination. I recently prepared a brief summary report ("Orlando: You Don't know the Half of It") for a foreign investor; if you like, message me separately and I can send it to you.
Look forward to seeing you visit the fastest growing Metropolitan area in the state.
Bradford, NH · Member since 2016 · 3 posts · 0 votes
10y
Any thoughts on a better investment for 10 year appreciation - Miami or Orlando? Looking for buy and hold, doesn't need to bring in lots of cash flow, I care more about appreciation. Never been to either city so I'm not even sure what neighborhoods to target.
Rental Property Investor · Fort Wayne, IN · Member since 2016 · 258 posts · 177 votes
10y
Pinallas county ,I think is best for investment now I heard but some people posted Cape coral but two months ago I went to Cape Coral and still like clearwater area more than fort myers and cape coral.
Investor · Melrose Park, IL · Member since 2015 · 77 posts · 24 votes
7y
@Gavin Welch do they break even because they are not physically down there managing it themselves? My friend has 3, 5 bed 3 bath homes with pools in Davenport. But he lives there and manages all 3 himself. He makes a good living, nets about $3,000/house after mtg, taxes, ins., expenses, marketing, management (which he does himself). I guess property managers would charge 20-30% of gross bookings (but that includes the property managers doing all the marketing and booking too). Still, if it's a standout property, you could eek out a little profit, and still vacation yourself there a few times a year.
Real Estate Broker · Lakeland, FL · Member since 2011 · 305 posts · 181 votes
7y
James, if you self manage you can make some decent returns, with the apps now, self management is not that difficult. My brother has a property that's a couple of hours from him. He self manages is it. He found a cleaning lady that specializes in short-term rentals. He has an owners closet and three complete sets of sheets for all the beds. When someone leaves, she cleans and changes the sheets, she takes the dirty set and washing them at home and replaces them when she returns.
I'm not sure about the 20-30%, that seems a bit high.