Purchase Florida rentals; Jacksonville, Tampa or Orlando?

28 Replies

Hi everyone, I joined BP a month or so ago and was able to find some great info on here. 

I'm an investor from Las Vegas, looking to move my investments out East, and Florida seems to be a good place, that pops up positively in the news as it relates to appreciation and rental returns.

I'll be heading to FL in a couple weeks and will check out Orlando, Jacksonville and Tampa/St Pete area. 

I'm looking for property that has good potential for appreciation and that has a good cap rate of say 8+. 

Could anyone give me some input on these three cities and what differences they might have...

Thank you in advance!

Welcome to the BP community!!!

I'm in Jacksonville,Fl and I operate in the capacity of a wholesaler/investor.I'm gonna apologize in advance for being bias but Jacksonville is a awesome market hands down we have several military installations and fortune 500 companies headquarters, here CSX corp and Fidelity National Financial just to name a few so of course population growth always follow which makes for a strong rental market and great cash flowing properties throughout Jacksonville especially in these area's  the Westside,Southside and in Arlington.

I'd be more than happy to discuss further.

Hi Aleejandro,

Welcome to Bigger Pockets. I discovered BP a while ago but didn't really get involved until recently. I'm sorry I waited so long to "plug in". BP is an awesome resource.

Florida is a great market for Note Investors.  I am a cash flow investor. I have been a landlord since 1982 and I have also flipped a fair numbers of homes over the years.

A couple of years ago I discovered the "paper" side of the real estate investment world. I purchased my first Mortgage Note. I have been actively acquiring Notes for passive cash flow since that time.

I like the the passive nature, the safety and the cash flow that I receive from Performing Mortgage Notes. I still own "brick & mortar" real estate but my end game is to be 100% in paper at some point.

I upgraded to BP Pro & upgraded my profile. Check it out.

@Aleejandro Dela Vega I actually invest and wholesale in all 3 markets.

I live in Lakeland, FL., 30 min east of Tampa and 40 min west of Orlando. (They call us Orlampa, or.... Tampondo... Depending on which way you're going) However, I am currently writing this post in my car (no I'm not driving) in Jax as we look at a package of 185 tax deeds that we are currently marketing. (Yes, if you want an incredible cashflow property you are welcome to contact me about one or more of these properties ranging from 5k-25k)

The important thing to know is, depending on your investment criteria, there are right places and wrong places to invest.

In the Lakeland market, there are a number of colleges, as well as this is where Publix corporate offices and warehouses are.  Amazon just built a fulfillment center there so great place as far as jobs.  Also, Tampa and Orlando surround this area and are a more mature market thus giving you better prices and opportunities.

Tampa and Orlando, is of course Tampa and Orlando. While Tampa is more industrial, Orlando lives and dies on its tourism.  The good news is, people keep coming to the town the mouse built.  

Again, good and bad pockets to both areas.  Now there are over 100k houses in the Tampa market over 30 years old where as in Orlando, there are less then 15k house in the age range.  What that means is there is a greater chance of high equity deals in Tampa then Orlando, though there are deals in O town as well. (Just have to look a little harder)

Which leads me to Jacksonville.  Duval is the largest county in Florida, and since Jacksonville is pretty much all of Duval, I'd venture to say That Jax is the largest city in FL.

Jacksonville is definitely happening right now.  There is a lot of activity going on and there are a lot of deals to be made.  I believe that I could stop investing anywhere else and just concentrate on Jax and I'd still be flush with deals.

That being said, Jax is one of the most hodgepodge areas I've ever seen.  The neighborhoods change from one street to the next.  It's like nothing I've ever seen.

Im not telling you this to scare you from this area.  As mentioned, I'm here right now.  I also, own some of my own portfolio here too.

Just do your homework!!

Hope this helps!!

@Aleejandro Dela Vega welcome to BP! I am an investor friendly agent in the Orlando market. While I can't provide any incite on the Tampa and Jacksonville markets if you have any specific questions about Orlando feel free to ask. I know my market very well.  We have a hot market here so the low hanging fruit is hard to find, however, there are good investments to be found. Most areas in central Orlando rent very quickly with steadily rising rents. 

Just have to chime in here and add my $.02

I agree 100% with @David Dey , Jacksonville is almost a market you have to live in for a year to find the "safe" places to invest - one side of the street is okay, but on the other side of the pavement - look out! That being said, I picked up a 4 plex for $15K per unit ($60K) last year, 100% occupied at $500 per unit. You just have to complete a risk assessment and see what market you like the best.

For the immediate moment, I personally like the Sarasota/Manatee markets for appreciation, Hillsborough/Pinellas/Polk markets for cash flow, and Osceola/Brevard/Orange county markets for a mix of the both. 

I am a Broker, REALTOR, and property manager, and am happy to sit down for coffee and go over the mixed markets of Florida. We (our agents) either personally own, or manage properties in Tallahassee, Jacksonville, Tampa/St. Pete, Sarasota/Bradenton, Ft. Myers, and Orlando, and would be more than happy to assist you in setting up shop here in Florida. 

Thank you all very much for your input. Jacksonville is sounding very interesting at this point. I will reach out to you as soon as I get solid dates for my trip and hopefully meet up with some of you while in Florida. 

The best kept secret in Florida is Panama City Beach and the Emerald Coast! Much higher returns right now, especially in vacation rentals and lots of great mgt companies to handle the turnover. I live and work in this area after 15 years in Ocala/Orlando/Tampa - I don't know the Jax market as intimately but the best bang for your buck may well be the Panhandle. Happy to help you put it on your radar!

Hey all, this is all very good info. @Aleejandro Dela Vega thanks for posting about this topic! Our business in focused on wholesaling cash flowing properties in the Hillsborough county (Tampa), and have been focusing on picking up single family homes for 65% ARV or less. I would be happy to share some of these deals with you, and connect with any other cash buyers that are looking for cash flowing properties.

Feel free to contact me, and we can take it from there. 

@Benjamin Pekarek what type of marketing are you doing in the Hillsborough area?

Vuk, 

Cell phone doesn't allow me to link. I rely heavily on word of mouth, but we also direct mail through property records. We don't go after the listing/buying side of real estate too much, we're predominately a property management firm.

Hi Aleejandro -

I would recommend that you should at least take a look at the Central Florida vacation home market around Disney World.  It's a year-round market because of Disney World, Universal, SeaWorld and other entertainment venues.

If you would like some pro forma numbers on select vacation homes here, please feel free to contact me.

Good luck,

Keith

Originally posted by @Amie Fulks:

The best kept secret in Florida is Panama City Beach and the Emerald Coast! Much higher returns right now, especially in vacation rentals and lots of great mgt companies to handle the turnover. I live and work in this area after 15 years in Ocala/Orlando/Tampa - I don't know the Jax market as intimately but the best bang for your buck may well be the Panhandle. Happy to help you put it on your radar!

 Thanks Amie, sounds like I need to have a look there also. I'll check and see if I have enough time in my schedule to make it up there.

Originally posted by @Keith Courtney :

Hi Aleejandro -

I would recommend that you should at least take a look at the Central Florida vacation home market around Disney World.  It's a year-round market because of Disney World, Universal, SeaWorld and other entertainment venues.

If you would like some pro forma numbers on select vacation homes here, please feel free to contact me.

Good luck,

Keith

 Thanks Keith, I haven't done any vacation rentals yet but sounds like I should consider it.

Originally posted by @Vuk Dulanovic :

Hey all, this is all very good info. @Aleejandro Dela Vega thanks for posting about this topic! Our business in focused on wholesaling cash flowing properties in the Hillsborough county (Tampa), and have been focusing on picking up single family homes for 65% ARV or less. I would be happy to share some of these deals with you, and connect with any other cash buyers that are looking for cash flowing properties.

Feel free to contact me, and we can take it from there. 

@Benjamin Pekarek what type of marketing are you doing in the Hillsborough area?

 Vuk, I am definitely interested to hear about what type of inventory you have. 

Originally posted by @Account Closed :

Welcome to BP @Aleejandro Dela Vega. Glad to have you here. The market is Hott out here. Try to make it to one of our RIEA meeting while you are out here. Hope to see you aroung. 

Thanks Jonathan, I'd be interested in getting more info on the RIEA meetings.

The big boys are all working those areas.     Though i do believe a small landlord will always do better than them.   I'd suggest working a smaller area that you aren't competing with them to purchase.

We sold one in Jacksonville a few weeks back and the hedge fund actually replaced brand new carpet because it didn't match the color scheme they wanted.     They made me want to rent from them since it seems like they just don't care about the bottom line and they wanted their houses pristine.    

Originally posted by @Leigh C :

The big boys are all working those areas.     Though i do believe a small landlord will always do better than them.   I'd suggest working a smaller area that you aren't competing with them to purchase.

We sold one in Jacksonville a few weeks back and the hedge fund actually replaced brand new carpet because it didn't match the color scheme they wanted.     They made me want to rent from them since it seems like they just don't care about the bottom line and they wanted their houses pristine.    

 I hear you, that's sport of what's happening in Vegas also. 

Is your area predominately Jacksonville? Also, in your opinion are you able to find 8,9,10% cap rates for Class B SFR's there?

I work the entire state.    About 100 houses a year....   I also use to live in Vegas and completely understand Florida is about 6-12 months behind what you experience.    

As for 10% cap rates, i kinda doubt it.   They paid 155k and are renting it for 1475.     We were into it for about 100k.      From the looks of their pictures they put another 5-10k into it after they bought it.      Even at our price using the "50% rule" you are only at 6-7%   Limited experience with rental costs...the idea of having so many tenants gives me a headache.

Originally posted by @Leigh C :

I work the entire state.    About 100 houses a year....   I also use to live in Vegas and completely understand Florida is about 6-12 months behind what you experience.    

As for 10% cap rates, i kinda doubt it.   They paid 155k and are renting it for 1475.     We were into it for about 100k.      From the looks of their pictures they put another 5-10k into it after they bought it.      Even at our price using the "50% rule" you are only at 6-7%   Limited experience with rental costs...the idea of having so many tenants gives me a headache.

 Jacksonville is a hot market right now, with less competition than major cities. Kinda what atlanta was 5-6 years ago..

Originally posted by @Mocellie Bitting :

Welcome to the BP community!!!

I'm in Jacksonville,Fl and I operate in the capacity of a wholesaler/investor.I'm gonna apologize in advance for being bias but Jacksonville is a awesome market hands down we have several military installations and fortune 500 companies headquarters, here CSX corp and Fidelity National Financial just to name a few so of course population growth always follow which makes for a strong rental market and great cash flowing properties throughout Jacksonville especially in these area's  the Westside,Southside and in Arlington.

I'd be more than happy to discuss further.

I have been thinking about Jacksonville but I have had time to discover the city yet. I am trying to make up my mind should I go ahead and make Jacksonville a real player in my plans

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