Fl multifamilies - where to start?

31 Replies

Hello All, I'm looking to invest in multifamily property in FL. I have a few multifamilies in MA but want to try the FL market, any suggestions? where to focus? what price point/cap rate to expect? I greatly appreciated! Thank you

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@David Paez, I agree with @Scott Morongell . Orlando is really hot right now. Lots of new development. There's a new Amazon being built near me, by the Lakeland / Winter Haven area. Tampa is always good too. We should get connected if you're planning on coming down here. I'm trying to do some BRRRRing here myself!

@David Paez

Hey David,

You are definitely honing in on the hottest areas in FL! Orlando was definitely the hottest real estate market following 08-09 but Tampa caught up quite quickly and they are both the top two cities in terms of inflow for the past several years. I'm from the Northeast as well but I've lived in Tampa now full time for the past year and a half. Prior to moving down here, my partners and I had been investing in Tampa and St. Petersburg since 2015. Anyone saying there aren't good deals to be had in this area are not on top of the market. It's true, they are not as easy to come by nowadays since the market is saturated with Investors, but with 1. Someone who is constantly analyzing new listings and 2. Being ready to pull the trigger when a property comes on the market (Pre-approval, earnest money available, etc.), you can absolutely scoop up a deal. I suggest working with an agent who is Investor friendly and has knowledge of the rental market in particular, and can set you up with an MLS email drip which will give you an idea of whats available, and shows you when new properties come online. If you have any questions, I'd be happy to help!

There's not a lot for sale on the MLS, but Brevard county is a great place right now. So many engineers/scientists that work in the area, so people are able to afford higher rent. Look in Melbourne (32901/32925) or Palm Bay (I generally look in 32905 since it's close to the river, but you can go further with 32907, 32909) for people that work in Melbourne, or Cape Canaveral, Titusville, Cocoa (close to the river, not inland) for people that work at CCAFS/KSC. You can also look on the barrier island, but your returns won't be as high.

@Nicole Marshall I’d be carful. I’ve lived in the Brevard country area for 10 years.

1. Yes lots of engineers, in fact that is practically the entire economy. If there is any economic issues in the job market or specifically the engineering market than everyone will run.

2. There isn’t much there but jobs right now. It feels and acts as a space we’re people go to get work and that is it. They aren’t going to stay there for a long time. This might not matter.

3. House prices are at a peak. If there is any change Florida and especially brevard county will get hit and hard.

In general based on living there for a long time I wouldn’t invest in housing in Brevard county. Especially everything south of Malabar road.

There just isn’t enough going on. It’s a bit of an economic one trick pony and that is a dangerous gamble.

That being said it probably depends on your goals. I also could be wrong.

@Travis H. - while I agree with #3, I'm not in full agreement with #1 and definitely dispute #2. I moved here a year ago from S. Florida (which IS transient) and many of the people I've met here have been here their entire lives. Transplants moved here 20-30 years ago. Yes, the space industry will likely involve the most transient, however I would argue this is a place where people stay for good. It's relaxing, people are friendly, there's not much traffic. Then again, perhaps I'm biased because I'm on Merritt Island and yeah, I'd rather be here than Malabar or Palm Bay. But it's the opposite of transient. 

Tampa is a great market! Are you looking to buy turnkey rentals or BRRRR? People always want to live by the beach and rentals around Clearwater and Saint Pete are always in demand. Also, the Ybor City area is booming.

David, there is a related post on BP that focuses specfically on Jacksonville-based Holistic REI, a turnkey RE provider. If you are looking to do BRRR to increase your profit margin (we are not), there are probably better avenues to pursue, but if you are looking for a TK company providing new construction options in FL, I recommend you check out (and do your own due diligence) on Holistic REI. My wife and I (disclaimer - novice inestors) just closed on a new construction triplex in Ocala and so far we are very happy with the purchase. Of course, time is the true test of any investment, but our initial experience and with the company and investment is positive. Rather than contacting them directly, I would suggest getting a rebate realtor to contact them on your behalf. That way if you do follow through, you will get money back at closing (or better yet applied against the purchase price on the ALTA statement). As you are doing the research and due diligence (vice the realtor), look for a rebate realtor that offers a 50% rebate. If you have any questions, feel free to PM me. Matt

@Tchaka Owen I definitely agree. Most of the people in my area moved here for a job 20-30 years ago and never left. I also agree to avoid most of Palm Bay and Malabar - just not a lot going on there. Harris is on Palm Bay Rd, which is the divider between Palm Bay and Melbourne. Harris also has a manufacturing facility in Malabar, but they more likely hire technicians vs engineers. I am personally looking in the downtown Melbourne and Eau Gallie Arts District areas. There are lots of multi-family homes there, with the chance for higher returns with STR.

Also, it's not JUST the space industry. We have a huge aviation industry as well. This area was definitely hurt when the space shuttle program shut down, but that was heavily government-reliant. The space industry has since become a lot more privatized, so there are more opportunities now than ever. You also have Florida Tech, which used to be a small university back in the day, but now has expanding at a rapid rate. So not only do you have students coming in (potential for student housing), but you also have those that will likely stay after they graduate with a science/engineering degree. The big companies in the area recruit from FIT heavily.

Melbourne was also named #1 place to live near this beach this year. https://www.floridatoday.com/s...

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@David Paez so back to your original question, since this somehow got hijacked to a Brevard discussion...:)

I would start by contacting a couple of local MF Brokers.  I can help you with that if you would like.  I am very active in the MF community down here. We host meetups, network and analyze deals on a regular basis.  Once you talk to the players and pick a market, then its just about finding the deals that meet your criteria. 

@Natasha Dillon

I buy and rent as long as I make 300 per month cash flow. I was going to move to Orlando to do this but I break even or lose money on everything there. Here in Tally I make profit and there’s never a shortage of renters because of FSU. I’m on my 3rd investment property and I buy all over town except on bad areas. I’ve been here 27 years.

South Florida is brutal. Low wages and high cost of living. I have a duplex in Brevard Co. I may be interested in selling at market rate.

@Natasha Dillon , don't know top much specifically about Mt. Dora. I'm in Tavares about twice a week for work, but I don't t look there for investment property. From what I've noticed it seems to be decently middle class. Tavares specifically is big on sailboats and the lake life! Closer to Apopka is a little more run down, more vagrants, but not too bad. Tallahassee is definitely out of range for me! Lol.

Originally posted by @Alexander Johnosn :

@Natasha Dillon

I buy and rent as long as I make 300 per month cash flow. I was going to move to Orlando to do this but I break even or lose money on everything there. Here in Tally I make profit and there’s never a shortage of renters because of FSU. I’m on my 3rd investment property and I buy all over town except on bad areas. I’ve been here 27 years.

I'm having the same problem down here in west palm beach as well. Numbers are not making sense on the MLS and I'm still learning how to find off market deals.

@Mya Toohey what’s your thoughts about investing in units in mobile home parks ? I know that the winter season will be here soon and units in 55+ communities are renting for $12-1500/month on a 3-6 rental. Some parks allow rentals, some don’t. Thanks in advance for your opinion.

@David Paez I have been investing in Jacksonville and Tampa (200-300 unit class b apartment syndications). Value add properties around a 5 cap. I'm evaluating a deal in Orlando at the moment. I have a couple of market reports and forecast data I can share.