Emerald Coast STR Market

New to Real Estate · Chicago, IL · Member since 2024 · 8 posts · 5 votes

I currently own a long term rental but am looking into STRs to capture bonus depreciation and find exceptional cashflow. Can anyone provide their opinion on the Emerald Coast market? Specifically, I'm looking at Destin/Panama City Beach. Any pros/cons/things to look out for would be greatly appreciated.

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January Johnson

Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 487 votes

Thank you so much, @Michael Baum! We are on it!

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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
1y
Hey @Jake Barrutia, send @January Johnson a PM and she can give you a ton of info. She is an expert in that area.
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
1y
Depending on the unit and its location this is a great market - but it is very competitive.
[email protected]813-563-0877
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Daniel Baccarini II
Lender · Member since 2022 · 32 posts · 8 votes
1y
I work with a lot of investors in that area. There is a lot of opportunity at a variety of different price points. It comes down to how much you are looking to spend and what type of property you want to buy.
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January Johnson
Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 487 votes
1y
Thank you so much, @Michael Baum! We are on it!
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Melissa HaworthBusiness Member
Real Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 269 posts · 103 votes
1y
You're definitely looking in a great direction with Destin and Panama City Beach. The Emerald Coast has become a hotspot for short-term rentals, especially for investors looking to take advantage of bonus depreciation and strong seasonal cash flow. I’ve seen a lot of interest in this area, and for good reason.

Both Destin and PCB pull in steady tourism from spring through early fall. If you can snag a property near the beach or with great views, you're looking at high nightly rates, especially for homes that can host larger groups. It’s a family vacation destination at heart, which means longer stays and solid bookings during peak seasons.

From a tax perspective, Florida is super friendly. There’s no state income tax, and properties in this region work well for cost segregation studies, making that bonus depreciation even more attractive.

Now, there are a few things to keep in mind. Insurance premiums have been rising, so make sure you're running those numbers early on. Some HOAs are very STR-friendly, but others have limits on rentals, like minimum-night stays or permit requirements, so it's important to read the fine print before jumping in.

Also, while the high season can be incredibly profitable, the off-season does slow down a bit. As long as your numbers are conservative and you’re not relying on year-round peak performance, the returns here can still be excellent.

If you're looking at a specific neighborhood or property type, I’m happy to share more detail. The Emerald Coast has a lot of upside if you know how to navigate it.
[email protected]469-658-2869
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Ricardo Hidalgo
Real Estate Agent · Member since 2019 · 569 posts · 257 votes
1y
STR are going through a huge adjustment in that area. Some are even selling at 2021 pricing now depending on the market. I am starting to see the 800k to 2 million dollar price point adjust by another 150-300k.
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