Rental homes in the Florida market?

12 Replies

What are the thoughts going on for the Florida market?  Is it a good place for investors to be going into, especially for rental homes? 

Florida's number of foreclosure homes is increasing which means there are plenty of distressed property for inventory, but does that make a great rental market?

Hi Gretchen,

Well, there is no "Florida Market". There are many markets in Florida and they can be very different. Miami and Orlando are fairly hot right now, other areas like the Space Coast, not as much. Some areas are having stronger job growth which makes it a good rental market but can make numbers harder to look good. Other areas you can get houses for very cheap but you won't have a big pool of renters as there's still not a lot of job growth. 

My advice would be to pick one or two markets and start researching them. If you rule one out, pick another market and keep researching until you find one you think looks good and then really learn that market well.

Cheers!

Eric

Hi Gretchen,

The rental market in Central Florida is still very strong. There are a lot of people going through foreclosure right now so that is leaving them with only the rental option once they get booted from their home. 

I have a couple properties that I am getting under contract as we speak in the $50-70K range and that rent for $1000-1200 a month. There are deals out there, just need to know where to look or hook up with people that are good at finding them:)

Eric is completely correct.  Real Estate is local, and defining a market as an entire state isn't going to be very accurate.


That said, Florida does tend to have relatively high property taxes and insurance costs.  Due to these inflated expenses, the margins on rentals can be thin.  Compared to rentals in other markets, I think investors accept lower margins in Florida simply hoping for more appreciation in property values.

@Scott Wagoner  nailed this one. We just bought a house the other week for 50k that is almost turn key and we are going to have it rented around 950/mo no problem. Our local market in Orlando great, but I cannot speak for the whole state, nor do I think anyone should be allowed too.

Medium anchorJustin Stamper, American Anchor Homes | [email protected] | 4077205999 | http://www.AmericanAnchorHomes.com | Podcast Guest on Show #201

Florida in general is a good market.  Lots of people are moving here. The state has had great job growth and good market appreciation. I am biased a bit because I am an agent/investor in SW Florida. If you buy right and have good management there is money to be made. If you want to know about the SW Florida market feel free to ask and I will tell you what I know. p.s.--I am from Beaumont and will always call SE Texas home.

No company avatar mediumJohn Thedford, John Thedford | 239‑200‑5600 | http://www.capehomebuyers.com | FL Agent # BK3098153

Originally posted by @Scott Wagoner :

Hi Gretchen,

The rental market in Central Florida is still very strong. There are a lot of people going through foreclosure right now so that is leaving them with only the rental option once they get booted from their home. 

I have a couple properties that I am getting under contract as we speak in the $50-70K range and that rent for $1000-1200 a month. There are deals out there, just need to know where to look or hook up with people that are good at finding them:)

 I guess you might be a person to contact if one were looking for such properties?  Exploring the possibility of doing a "house hack", as they say, in the central Florida, Tampa, Orlando region.  Perhaps your name is one i should keep in mind?

I agree Florida will always be a great place to invest. I think pwle will always come down here for vacation, move down here for the weather,  and retire down here. I also believe that the millennials will continue to move and rent down here.  The aspect of no state income tax also attracts a numerous type of people. Learn what your goals are, where you wouldn't mind being and check out all the sub-markets in this great state.

 @Gretchen Diercks :
            I am a realtor in South Florida people are renting like crazy at crazy prices also. So if you have a property at a good price you are set! Miami,and Broward  county especially!!!

FL Agent # SL3255845

I can tell you Ft. Lauderdale is a great rental market. Don't forget all these people that are loosing there homes still need a home, so they rent!

We have rentals in Ft. Lauderdale, and as Jacques says, the market is very strong in that regard. One of our newer tenants lost her house to foreclosure. Nearly all of our tenants are from out of state/country, and although it may be a transient market where tenancies may only last a few years, people are always moving there and we've raised the rent with every vacancy.

@Justin Stamper I actually would like to speak for the entire state... ha!

@Gretchen Diercks , to everyone's point, every state & market is nuanced, and this is especially true for Florida.  In markets like Orlando, because of our massive hospitality industry, there are some great buy and hold opportunities.  There is a big chunk of the economy in the low-mid income bracket, that support the hospitality industry, and many of them will be lifelong renters.

@Scott Wagoner what kind of properties are you finding and buying at that range that would rent for $1200?

I'm finding a lot above the $100k line whose surroundings are renting for $900+ but nothing extraordinary. 

And then the ones in the $50k range need a lot of work or won't rent to someone who can afford $1k for a nicer property that is going to cost $100k or more.