South Florida - Cash Flow Market ?

Question

Hello -

Looking to invest in South Florida Market for Cashflow purpose. I've been analyzing deals for the past 8 months (townhouses and Condos mostly)  and It was really hard to find anything higher than 8% COC in Boca Raton, Delray or Pompano Market (and that was at 90%-95% asking price which is almost impossible those days )

1.What are you guys opinion on the best market in South Florida  for cashflow purposes ?

2.What is an acceptable COC for south florida market in Boca, Delray or Pompano ?

3.Should the strategy for high COC in South Florida be changed from Annual Lease to Seasonal Lease or Short Term Rental (AIR BNB)

Alex Cueto · Answer

I would have to agree with Daniel and Brian.   Here in the Tampa Area the home prices are still reasonable, and it is not uncommon for investors to cash flow 25%-40% every month.

Daniel Rozen · Answer

I think East coast of Florida (where you are looking) is overpriced. HOA and other fees make it almost impossible to cash flow. Short term/vacation rental is great option but from my little research its difficult to find anything decent that allow such rentals. On the other hand, west coast of Florida is very doable. Tampa, its suburbs and Sarasota area. Lot of new construction and some builders give good incentives at closing. Some areas look stronger for rentals than others. Research.

Brian Garrett · Answer

The simple answer is South Florida is not a cash flow market it's an appreciation market.

If you're looking for cash flow then you'll need to do short-term rentals if you can find properties that allow it.

South Florida - Cash Flow Market ?

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