Vacation Homes in Florida - where would invest?

Vacation Homes in Florida - where would invest?

Investor · Sarnia, Ontario · Member since 2017 · 44 posts · 43 votes

We are looking to eventually purchase a vacation home in Florida. We'd like something that we can use as a STR for a few years, and escape on our own a few times a year with family.

I'm curious, those of you who are familiar with STR and the Florida market, where do you think some of the up and coming places to invest would be? Which markets should we be watching?

This is where I'm at right now, but I am most definitely open to investor advice.

We'd like a 3/2 with a pool. Freehold house preferred, though the right condo might appeal to us. Something on a canal or waterfront would be ideal, but not a deal breaker. I think we prefer southern Florida, gulf or Atlantic side, that's within walking distance to bars and restaurants, and a beach nearby. 

I think Orlando is out, as we prefer less theme parks/chains, and more access to water and beaches and bars. Miami is also out, as it's a little too fast pace for us. 

I love Fort Lauderdale/Hollywood, but it seems to be picked over as far as vacation rentals (within our budget) go. Are there still pockets in that area that could work for a vacation home? The other bonus of FLL is that we can fly direct from Detroit for very little, which is also a factor.

I also love Fort Myers, as I love the beach town vibe. 

Are there other areas that have that Fort Myers or Lauderdale-by-the-Sea vibe that we should consider?

We've spent time in Punta Gorda (it was alright, but still seems affordable), and we did like the feel of Port Charlotte. 

I also keep hearing about Destin, but I think we'd prefer to be a little more south.

I am open to all suggestions, as I want to start exploring a few more places so we can focus our search area, keep researching, and be ready to purchase when the right property presents itself at the right time. 

Would love thoughts and advice from those in the know, as well as any other advice for managing a vacation property from afar. 

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Property Manager · Aurora, CO · Member since 2014 · 221 posts · 210 votes
8y

Hi @Jami Kloet, nice to meet you! 

I have 3 condos in Fort Walton Beach FL (next door to Destin) in the Panhandle. I know you said you prefer southern FL however, so my feedback might not be quite relevant. But our first condo there did so well that we have since  bought 2 more in the same building. 

Why FWB? We (like you) had heard about the popularity of Destin, both to vacationers and to investors. But we found we could not get what we really wanted within our budget in Destin. Our realtor took us over the bridge to Okaloosa Island (in the city of FWB) and bingo! We found one of the most spacious 2 BR/2BA condos in a small building located directly on the beach with a gorgeous view of  the Gulf...all within our budget. (That was in 2014; the market has continued to increase so each of our subsequent purchases cost increasingly more than the last.)

@John Underwood I saw that same episode of Vacation Rental Potential that touted Panama City Beach as the #1 U.S. vacation rental destination, and for some reason I have a hard time believing it! I guess they may be basing that claim on the number of bookings that city has garnered on the site, but when I think of the #1 place I'd like to visit in the U.S. PCB is not one of them. Just may be me, though. 

I've enjoyed watching the series, though.

Best of luck Jami!

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    8y

    @Jami Kloet I saw on A&E (Saturdays at 11AM) Homeaways new TV show VRP (Vacation Renatal Potential) that Panama City Beach Florida was the #1 U.S. vacation rental destination. 

    Not sure if they are saturated with rentals or not.

    You could go on HA/VRBO and see how full vacation properties calendars are and what rates they are getting.

  • Investor · Sarnia, Ontario · Member since 2017 · 44 posts · 43 votes
    8y

    @John Underwood I love Panama City Beach, I actually hadn't really considered it. I guess one of my concerns is weather, we like the heat, and that's why we prefer to be more south. However, I will start looking in the area. I haven't explored it at all for STR potential, so I appreciate the feedback.

  • Property Manager · Aurora, CO · Member since 2014 · 221 posts · 210 votes
    8y

    Hi @Jami Kloet, nice to meet you! 

    I have 3 condos in Fort Walton Beach FL (next door to Destin) in the Panhandle. I know you said you prefer southern FL however, so my feedback might not be quite relevant. But our first condo there did so well that we have since  bought 2 more in the same building. 

    Why FWB? We (like you) had heard about the popularity of Destin, both to vacationers and to investors. But we found we could not get what we really wanted within our budget in Destin. Our realtor took us over the bridge to Okaloosa Island (in the city of FWB) and bingo! We found one of the most spacious 2 BR/2BA condos in a small building located directly on the beach with a gorgeous view of  the Gulf...all within our budget. (That was in 2014; the market has continued to increase so each of our subsequent purchases cost increasingly more than the last.)

    @John Underwood I saw that same episode of Vacation Rental Potential that touted Panama City Beach as the #1 U.S. vacation rental destination, and for some reason I have a hard time believing it! I guess they may be basing that claim on the number of bookings that city has garnered on the site, but when I think of the #1 place I'd like to visit in the U.S. PCB is not one of them. Just may be me, though. 

    I've enjoyed watching the series, though.

    Best of luck Jami!

  • Investor · Saint Petersburg, FL · Member since 2017 · 15 posts · 12 votes
    8y

    I highly recommend the Pinellas county beaches. (St Pete Beach, Treasure Island, Madeira Beach, Redington Shores, Clearwater Beach, Dunedin). 

    These areas are so underrated!

    Anna Maria Island, Bradenton Beach, Sarasota and Siesta Key are really nice too.

    Have to be careful about doing VRBO's in these areas though, every municipality has recently been adding new regulations on minimum rental requirements.

  • New to Real Estate · Saint Petersburg, FL · Member since 2017 · 36 posts · 13 votes
    8y

    @Jami Kloet just to add on to @Peter Miller's post, Clearwater beach is (currently) Trip Advisor's #1 beach in the US! I'm from the Tampa area and I see this advertised in the airport every time I fly. So definitely not a bad place to look for STR as the demand will definitely be there!

  • New to Real Estate · Saint Petersburg, FL · Member since 2017 · 36 posts · 13 votes
    8y

    of course every travel site may have different ratings and I'm sure they will be constantly evolving, but still pretty likely to show up at the top of the list when vacationers are trying to decide where to visit  

    https://www.tripadvisor.com/TravelersChoice-Beaches-cTop-g191

  • Investor · Sarnia, Ontario · Member since 2017 · 44 posts · 43 votes
    8y

    @Valerie Rogers Thank you so much for that. That is an area we haven't explored, and I am definitely open to options. Our hope is that we will spend more and more time in the property as we age, and our kids get older, so it's just as much about finding an area and community we love as it is about the investment. Do you mind sharing or messaging me where your properties are located? I'd love to do some research on the area. 

    @Peter Miller I have spent time in both Clearwater, Treasure Island and St. Petersburg, and I do love those areas. I also like the proximity to Tampa airport. I will definitely explore those spots - thank you for putting them on my radar. I haven't spent time in the other areas, though I know a few people with properties on Ana Maria Island and Siesta Key. I have heard they are lovely, but if I'm not mistaken, a little more expensive.

    @Claire D. I have actually seen the ratings for Clearwater beach as well, and I would have to agree. I remember the first time I took my kids there, and they just couldn't believe sand could be that soft. I love the vibe in Clearwater as well, and the sunsets can't be beat. I didn't really consider it, but not I will have to do some research. 

    Sounds like we need to book a few exploration trips to Florida and get a feel for these areas. 

    Keep the feedback coming! It's very appreciated and has already been very helpful.

  • Rental Property Investor · Niceville, FL · Member since 2017 · 88 posts · 136 votes
    8y
    If it were me I would say Destin. But I live in this area. So a little bias. If I was coming in new, I would go for Panama City Beach area. Possibly Pensacola. Great things have been going on in those two markets for the last few years or so! Honestly, I think it would be hard to fail in Florida Panhandle area. Again, may be bias.... :-)
  • Investor · Sarnia, Ontario · Member since 2017 · 44 posts · 43 votes
    8y
    Charlie Price When seeking advice, I fully appreciate bias. I feel the same way about the area we currently live in, and I haven’t been wrong. We want a place that people love to live and visit. I’m definitely going to narrow my focus to the Panhandle now.
  • Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    8y

    @Jami Kloet You've had great responses. Here's one more. St. Augustine, a year-round tourist destination, drivable for many vacationers, on the Atlantic Ocean, national monuments, history, the oldest city of america, etc. I own in Naples too, where it's warm like you like. But for STR the demand where it is HOT is not the same as in St Augustine where the demand is even greater in the summer. I would never voluntary spend time in SW Fl in the summer. For me, it's akin to the cold and staying indoors in the winter in NY.

    I want to visit Destin and PCB too but we've never been there yet. 

  • Ann Arbor, MI · Member since 2017 · 109 posts · 52 votes
    8y

    My husband is interested in ST rentals in Florida so I have been looking around. One question I have is about the hurricane threat. Does that affect insurance rates? How is hurricane damage covered - via a rider or a special policy like earthquake coverage in CA? Would the property manager be responsible for securing the property for out of area owners? 

  • Bradenton, FL · Member since 2016 · 14 posts · 6 votes
    8y
    @Jami Kloet. I’m born and raised in Bradenton, Fl (Manatee County) and while I’m a bit bias Anna Maria Island checks all of your boxes. The village is amazing, is not NEARLY as crowded as Fort Myers and has some great beaches to boot. Also, it’s proximity to other world renowned beaches is fantastic. You’re about 30 minutes south of St. Pete Beach and 30 minutes north of Siesta Key Beach (Sarasota, Fl). You can’t really go wrong buying anywhere on Anna Maria, but you will pay top dollar for the type of property you described. Happy to help if you would like to know anything more. -David
  • Investor · Sarnia, Ontario · Member since 2017 · 44 posts · 43 votes
    8y

    @Nancy Bachety You bring up a really great point that I hadn't considered. Year round demand is definitely something that we need to consider, especially since it's unlikely that we will be visiting ourselves during the summer months. St. Augustine wasn't on my radar at all, but I will definitely start to explore it. 

    @David Soles You definitely do a nice job of selling Anna Maria Island, and I do know a few people who winter there. However, one quick glance, and unfortunately, we're not in a position to purchase $1Million+ vacation property (USD no less!). Ha! It would certainly be lovely if we could. Any bets on what area will be the next Anna Maria Island? That's where I'd like to put my money.

  • Real Estate Investor · Houston, TX · Member since 2016 · 142 posts · 79 votes
    8y

    @Michele G.  Yes hurricanes and flooding will be the insurance concerns.  I'm sure it is different for condos, but mortgages on a single family home in a hurricane zone will require flood, windstorm and homeowners insurance.  It can get very pricey and will impact your planning profit estimates so make sure you get accurate quotes before you dive in.

  • Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
    8y

    What is your budget for investing?  I'm a REALTOR in Panama City and grew up here, so I have a lot of info on the market for STRs (I own three), second homes, etc.  I'd love to show you around if you decide to look here.  I can tell you the pluses and minuses of various condo buildings (as well as for condos in general) and also show you some neighborhoods WITHOUT any HOAs that are super close to the beach.  You will certainly get more for your money here than further west on the Panhandle.  Also, Mexico Beach and Port St. Joe are sleepy little beach towns with great rental potential as well.

  • Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
    8y

    @Michele G. - About hurricanes and flooding:  Your 4-point inspection will verify the age of the roof and whether it has "hurricane clips", which will impact your homeowners insurance.  Flood insurance is a separate policy (it's easy to see if a property is in a flood zone on our property appraiser's website), and if you buy a property from an owner who has a current flood policy (many cash buyers do not get them), it's cheaper to TRANSFER the policy into your name than it is to have your insurance company write a new one.  Like, potentially THOUSANDS of dollars cheaper per year.

    Also, my three STRs are "in town" (Panama City), not on Panama City Beach (which is a separate town with higher insurance and taxes), and I have year-round demand.  Yes, it's slower from Sept. - Feb., but there are many types of renters, not just vacationers.  For example, last winter, I rented for 4 months to 3 physician assistant students here for rotations.  

    Our airport has direct flights to a lot of major cities, and airlines are expanding their routes.  Southwest, American, Delta, and United all fly here.

    @Charlie Price - Thank you for saying nice things about PC/PCB!  It's a great, and very affordable place to live AND vacation!

  • Investor · Sarnia, Ontario · Member since 2017 · 44 posts · 43 votes
    8y
    January Johnson Thanks so much for the feedback. I definitely think we need to pay a visit to the area. We haven’t really set a budget, but it’s certainly not a $1M+ property, unfortunately. We also need to be cognizant of Canadian dollars. Obviously, like any investor, we want to get the most bang for our buck. I have considered condos, but I am not totally sold on it. That said, I love the idea of a development that handles the rental pool. For the right place and location and price, we would certainly consider it. Again though, I haven’t fully researched the pros and cons. I also like the concept of a golf cart community with beach access nearby, but welcoming of vacation rentals - or is that a unicorn? Thanks again. I will definitely e looking into this area.
  • Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    8y

    I’m looking for a vacation property in Sarnia, Ontario. My hobbies include shoveling snow and going bowling.  Any areas I should focus on?

  • Staunton, VA · Member since 2018 · 83 posts · 42 votes
    8y

    @January Johnson do you know much about investing in the Pensacola/Milton areas of Florida? 

  • Las Vegas, NV · Member since 2018 · 7 posts · 3 votes
    8y

    We have many clients in FL and based on our data, you want to stick with S. Florida. Ft. Lauderdale/Hollywood and Ft Meyers/Naples are great choices. We find Ft. Lauderdale area to have the highest occupancy rates for our clients. You have the right idea also with a 3 bedroom, as they are in high demand. FLL Airport is fantastic with many inexpensive flights compared to Miami. It's also a huge cruise port city. 

    As far as management advice goes, it's important to find the right management company. It's important to get as much exposure as possible on multiple sites, and well designed listings. Also very important is dynamic pricing that meets supply and demand to maximize earnings. Guest reviews will also play an important role, so making sure the guests are always happy and the property is clean. Hope this helps! 

  • Rental Property Investor · Panama City Beach, FL · Member since 2017 · 44 posts · 44 votes
    8y
    Jami Kloet here is my input. I know the Panama City beach STR rental market extremely well. I own beachfront condos in this market. Charlie Price nailed it. Destin is amazing but the ROI is too difficult there. Panama City beach is spectacular for STR. trust me, I know. I cash flow extremely well and keep buying them. I have purchased 3 beach front condos in PCB in the last 6 months. I keep shaking my head how investors all over North America are looking at the wrong places still. This goldmine may not last for much longer as the prices get too high and become like destins but I will keep buying until they do.
  • Investor · Tustin, CA · Member since 2016 · 5 posts · 3 votes
    8y

    @Valerie Rogers Sounds like you have some great properties and that you were fortunate to have a good Realtor to help with your search.  Thanks for the information.

    To all, as for earthquake insurance in California.  It is very expensive and not practical.  None of my owners have earthquake insurance.  

  • Lake City, FL · Member since 2018 · 18 posts · 5 votes
    8y
    Originally posted by @Peter Miller:

    I highly recommend the Pinellas county beaches. (St Pete Beach, Treasure Island, Madeira Beach, Redington Shores, Clearwater Beach, Dunedin). 

    These areas are so underrated!

    Anna Maria Island, Bradenton Beach, Sarasota and Siesta Key are really nice too.

    Have to be careful about doing VRBO's in these areas though, every municipality has recently been adding new regulations on minimum rental requirements.

  • Lake City, FL · Member since 2018 · 18 posts · 5 votes
    8y

    Peter I agree with your assessment of the Saint Pete area. We travel Florida on business and think it is awesome. Some great little neighborhoods right on the beach that have that retro beach vibe going. Recently the Florida state legislature renewed laws that kept municipalities from imposing any new regulation on short term rentals, the only laws applicable are for those grandfathered. So I'm not understanding your comment regarding regulation. Are you referring to HOA's? I realize that is a horse of another color. Could you elaborate?

  • Rental Property Investor · Destin, FL · Member since 2016 · 91 posts · 55 votes
    8y

    I have lived in both Bradenton, FL and Destin, FL, and plan return to both areas later in my career.  I spent my high school years in Bradenton and frequently spent my time at Anna Maria Island, Siesta Key, Key Largo, and several other beaches in that area.  Although it is expensive, there is new construction going up on the northern point of Anna Maria.  I see that area getting much more expensive in the next few years. 

    Destin seems like a much more touristy town in my opinion.  It also tends to be more expensive than Okaloosa Island and Fort Walton Beach (10-15 min west).  I plan on investing in this area and have not ruled out vacation rentals.  It seems a lot more seasonal that Bradenton/Tampa (mostly due to the lower temperatures in the winter). 

    I would also research Hurricane charts and flood zones.  Part of the reason my father retired to Bradenton was a direct result of looking at the historical data for Hurricanes throughout FL. 

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