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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  • Rental Property Investor · Gulf Breeze, FL · Member since 2014 · 1k+ posts · 733 votes
    8y

    @Jami Kloet - Pensacola Beach!

  • Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 219 posts · 275 votes
    8y

    Hi, @Jami Kloet, you're getting some good input here. I have to completely agree with @Valerie Rogers. I live in Ft Walton Beach, FL. I'm a real estate agent here and also own and manage three vacation rentals of my own (two on Okaloosa Island). The area is beautiful and the return on investment is great, with families being the primary visitors. Yes, we have a spring break season, but it is still very family-friendly. We also have very high year-round occupancy rates because the area is very popular with "snow birds" retirees. If you are considering an area where you can retire, Ft Walton Beach / Okaloosa Island is a great option. Destin is only seven miles away. All the benefits of being near Destin are right there, without the extremely high prices (per sq ft) for condos. Okaloosa Island has a height ordinance for buildings, so there are no super tall mega complexes to block out the light from other buildings. I don't know your purchase time frame, but I definitely would recommend that you visit various areas. I always imagined myself more of a Miami type person, lol, but I completely fell in love with Ft Walton Beach when I visited a few times and eventually moved here. Good luck wherever you choose!

  • Specialist · FL · Member since 2017 · 139 posts · 88 votes
    8y

    @Jami Kloet If you like South FL you can check out Pompano Beach or even Deerfield. 10-20 mins drive up from Lauderdale by the Sea. Slightly cheaper prices by the beach and many developers are building there now so great for both an exit strategy and of course vacation rentals.

    Clearwater is great but only a matter of time until they enforce their 30day rule rental and fine everyone operating illegally.

    Destin is probably the most profitable I've seen in the high season but outside of that you are not making any money

    Any questions in any FL market let me know. Luckily I've managed rentals in all of them so I can give a great perspective.

  • Specialist · Santa Rosa Beach, FL · Member since 2017 · 21 posts · 19 votes
    8y

    The entire Panhandle of Florida is an extremely hot market right now. @Account Closed is in the 30A/Santa Rosa Beach area and can attest to not only the tourism, but the sustained growth that is expected to continue in this area. Each market has it's areas and hotbeds, but you can't go wrong anywhere in this stretch.

  • Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 487 votes
    8y

    You can get vacation property in Panama City Beach for $150K on up - as high as you want to go.  :  )

  • Investor · Port Charlotte, FL · Member since 2017 · 58 posts · 35 votes
    8y
    Punta gorda is where it's at! I know a great realtor if your interested.
  • Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    8y

    @January Johnson Wow- if you can get a vacation property for $150K in PCB, I'd say that location sounds like a winner. A quick look on airbnb shows good rates for that whole area, from Fort Walton Beach to Port St. Joe's but prices on Zillow vary by a wide margin. Seems like FWB and PCB have good cost to rent ratios, based on a quick search. I'm still not sold on condo's or townhouses but they do have some advantages. I'd like to visit within the next several months. There's military there too. What airport is closest? 

  • Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 487 votes
    8y

    @Nancy Bachety - I agree with your assessment!  :  )   But don't believe everything you see on Zillow.  The CEO of Zillow sold his home for 40% BELOW the Zestimate, if that tells you anything, ha ha.  

    ECP - NW Florida Beaches International Airport is closest, situated north of and in between PC and PC Beach and, further out, between Ft. Walton and Port St. Joe.  There is also an airport in Destin/Ft. Walton (VPS) and one in Pensacola (PNS).

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

    @Dave Carella We spent Christmas in Punta Gorda this year, and we did enjoy it. I like the housing prices, and the fact that most homes have a pool and lanai. I did feel it lacked that community, beachy vibe that I would like. I love that about Fort Myers and LBTS. It definitely feels like we could get more for our budget in the area, and maybe even something with boat access (which would be ideal, particularly sailboat). What is the vacation rental market like in the area? I did like the proximity to things as well - we went to Tampa for a day, Fort Myers, Bonita Springs. We enjoyed Fisherman's Village, but maybe we missed some other fun pockets? We don't need to be in the heart of the action, but I want to be nearby, and have areas to bike, and restaurants, beaches within close proximity.

    @January Johnson You are definitely selling me on PCB. It was years ago when I was there, but I do remember that it had that beach community vibe that I love, and I could see us enjoying our time there. Bonus if the rental market is strong. Thanks again for sharing your expertise. 

  • Saint Petersburg, FL · Member since 2016 · 13 posts · 4 votes
    8y

    tampa bays growing economy and cultural scene makes it a no brainer, areas just outside as many here have already said, like dunedin (my fav lil town), bradenton with its proximity to anna maria island, or tarpon springs  and palm harbor all offer great coast lines that are not overly populated. as i understand it pinellas county has dropped its efforts to stop str and decided to tax them at a different  rate.

  • Real Estate Agent · Tampa Bay · Member since 2018 · 16 posts · 10 votes
    7y

    @Jami Kloet @Michele G.

    Hey everyone. To add to a conversation about STR vacation condos in Tampa Bay - I am a realtor and it took me half a year to find an affordable community with private beaches and championship golf course. Now that I discovered it I made some rental income analysis and the numbers are great, some association on the island allow short term lease.
    It is a hidden gem community located 1.5 miles from St. Pete Beach (right across the bridge) and only 15 min drive to Downtown St. Peterburg Fl. This would be a good fit for people who want to live in a condo for a few months and rent it the rest of the year. If get a mortgage with 20% down and manage a condo yourself you can expect to make $9,000-$12,000 net.


    Vacation Style Island St. Pete Beach
  • Member since 2019 · 2 posts · 0 votes
    5y

    @Olga Shahan Can you give  little bit more detail? Is that on the gulf or Atlantic?


    is it still a good deal?

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