Best place for Air BnB investment in Florida?

Question

Hi, I’m new to all of this and want to get into the air BnB world and looking to buy a condo or house in FL.  What is the best city in Florida (assuming on a beach) where I can not only charge a good amount, but more importantly will have consistent year round rentals?  Looking for a 2 or 3 bedroom place and can fix it up if need be.

Luke Carl · Answer

Wherever the wife likes to go on vacation

Nathan Gesner · Answer

Do a lot of research. I was looking at the Florida market a couple months back and it's over-priced. Houses prices were astronomical and based on short-term rental income of the last two years, which I believe is an anomaly. I looked along the Emerald Coast, Tampa, and several other areas and even the best performers weren't doing that great. Just as an example, I could have bought a $1 million property in Destin and it would earn less than I do with my local short-term rental that I bought for $170,000 a few years ago. If the market turns, a lot of people will be stuck with losers.

Kyle Momany · Answer

I'd recommend the Pensacola area or even the Forgotten Coast ( Port St. Joe, Mexico Beach). As mentioned above, finding the area's that aren't talked about as much could be great right now. If you're wanting to be in a more established STR area, Destin & Panama City Beach are great as well. Airdna released data a few weeks ago that Panama City Beach was one of the highest nightly rate increases across the US! Our 5 bedroom on the east end has reflected that. Let me know if you've got any questions, best of luck!

Kristina Kuba · Answer

I would recommend the panhandle for vacation seasonal STRs.  Tampa for consistent metro STRs.

John Underwood · Answer

Destin, Panama City Beach, Ft Lauderdale etc. Lots of great places to pick from. Go for a house over a condo if you can.

Alex Papai · Answer

Look where others aren't... This can apply on a macro or micro level.

For example: Why not look at really old or ugly buildings... that you can spruce up and make habitable?

That seasonality that people are mentioning... means competition comes down 5 rooms at the motel 8 for 500/night...Or $400/night for the same amount of beds at your place that you purchased for $350k...

As a general rule of thumb i use 20% of market price as my revenue target... and a 20%-40% margin (cash on cash) with today's 20% down 7% investment loans. (Largely Depending on if you're self managing or paying up to 25% of gross)

I operate out of New Orleans and focus on the market from here to Panama City Beach - would love to chat and maybe pass a deal on =]

- Alex

(504)515-2005

Matt "Roar" Gardner · Answer

Just to reiterate the great advice so far, it depends...lol

If you want consistency, a downtown STR in a bigger metro will probably provide that for you; however, you'll have to battle the regulations of a city which seem to be always changing.

As an agent and investor in the Destin and Tampa markets, I like how they are regional, drivable destinations.  I accept that the returns will be seasonal, but even seasonal destinations can produce fantastic returns!

I wish you the best of luck!

Shawn McCormick · Answer

@Michael Furey Lots of good advice and information here for you to digest. Still lots of questions to be answered and considerations..

where do you want to spend time at, choose a location that suits your vacation needs too..

taxes and insurance will be huge factors in beach cities...

regulations are just plain hard to keep up with if you aren't local...

condo fees will be likely way too high in beach areas and kill your ROI...

good, consistant, experienced PMs/hosts in some areas

travel to and from your location..from airport, from beaches, toll roads, etc will they have to have connecting flights, then rent a car and drive another hour?

how well known is the area you are looking to go for the huge International vacationers that come to Florida

Orlando gets my vote on all of these questions, it was built for STR and has dozens of communities that are designated for STR usage. Our inventory is getting much better and you will have better luck finding a motivated seller.

Hope this helps. Best of luck!

Jonathan Greene · Answer

Florida is ripe with a million potential spots for Airbnb, but you should focus on the ones that have always had STR even before Airbnb because then you know they are sticking with it. I agree with @John Underwood on Destin if you can find something. Crystal River has gotten hot lately. I think Lakeland is sneaky pick as well.

Best place for Air BnB investment in Florida?

Most Popular Reply