Daytona Beach Market PROS and CONS

25 Replies

I am currently looking at the Daytona Beach area for buy-and-hold SFH and small multifamily properties. Interested in hearing PROS and CONS of the market and connect with anyone who knows the market.

Can anyone can recommend good Property Management, Brokers/Agents, and local lenders?  

Why depressing, dirty old, beat Daytona?   

If you were a FL native, you'd think, fun back in the 80s during Beach Week, Spring Break and they have the race track, but you would never want to live there!  

Drive around off the strip, out of season and what will you see?  Crystal Meth zombies everywhere, trashy, run down and you want to look at... small, multi-family buy and hold? 

You had better be on call 24/7 as your tenants will likely rarely sleep and will be digging holes in the walls looking for FBI cameras and copper wire to sell!     

Do yourself a favor, move your focus further south and forget crystal meth land Daytona.  The closer you get to Palm Beach County, the better.

      

I concur with Steve however I have never owned properties there. If you look at the crime statistics though it is not pretty. Brevard County further south may be a better choice but not without local knowledge. 

Hey @Joseph Campbell I have extensive knowledge of the Daytona Beach market as well as the Brevard County market that @James Stansberry mentioned.

First, I would echo that Daytona Beach is in a fairly bad place at the moment, especially if you're referring to beachside. The mainland, near the Speedway, has experienced some explosive growth due to the new One Daytona development and the Speedway expansion/renovations. However, beachside is pretty much a ghost town of what it used to be in the 80's and 90's and the tenant pool is less than desirable.

With regards to the recommendation to look in Brevard County, I would also echo that as a solid market to get into. I personally lived in/throughout Brevard for many years and the real estate market there is quite good at the moment.

Just out of curiosity, what is the interest in Daytona Beach, of all places, since you are inquiring specifically about that market?

I have had several bp members find investment properties over here and Brevard County let me know if you’re interested in looking in this area.

Lived in Daytona for 6 years, don’t buy there. Orlando cash flows and appreciates well if you’re looking for Florida real estate.

@Steve McRory @Marty True the reason I was inquiring about Daytona Beach was because of a friend who has been investing there (buy and hold SFH) with moderate success over the past few years. He just closed on a townhouse last week, so I thought I would run some reconnaissance via BP. Steve, Marty, @Joseph Koenig and @James Stansberry thanks for all the insight.  The picture has been painted very clearly, and I will shift my focus north to Brevard County.

What cap rates are you seeing in Brevard County? Any specific markets that make the most sense for SFH and smaller Multifamily?

My goal is to acquire multiple properties in a given market over the next few years and remain active in that market as long as the market still makes sense...

Updated 7 months ago

*south to Brevard County

I don’t completely agree with the comments on Daytona. I know it has had a rough decade or so but I believe things have been improving over the last few years. The area by the race track has definitely seen some rapid growth since NASCAR has invested hundreds of millions into that area. On the beach side there has been recent development with a Jimmy Buffet retirement community and the Hard Rock soon to open. Don’t get me wrong though. There are still some pretty rough areas in Daytona but it’s worth taking a look yourself. I have a rental there that is doing very well and as I’m looking for more properties I’m seeing the prices increasing pretty quickly. I’m just saying I think it’s worth a visit to see for yourself.

@Erik Kuhi I agree with you.  I think @Steve McRory 's take on the Daytona Area is too harsh.  Also, Daytona is a lot more than just the down town beach side (which I admit pretty much sucks).  However, go a little north and you get into some much better areas such as Ormond Beach and even Holly Hill has some quainter, quieter streets.  Go a little south and you get Port Orange.  Both of these areas have some of the top rated Volusia county schools (better than Deland, Deltona, and Debary which are all really hot investment areas).  As for crime, yes there are definitely some areas of Daytona I think twice about driving through at night.  But if you go onto Crime Mappers and compare what's going in Daytona to Jacksonville... OMG  Jacksonville makes Daytona look like Our Town.  And look at how popular Jacksonville is for investors right now.  I work in Daytona and I've been seeing the development that has been going on over the last few years, between the race track, Margaritaville, and the outlet mall, as well as a ton of building going on west of 95, I wouldn't give  up on the Daytona Area.  I know I haven't.

Updated 7 months ago

my attempt at @mentions doesn't seem to be working... sorry.

Wow. Some of the responses to investing in Volusia are crazy!   I could be wrong but the people commenting don’t seem like they even have investment properties here, but have a person feeling about it because they lived here at onetime.  The other counties mention above have there same issues too, but as whole you can find great and safe investsments anywhere if you do your own due diligence.  Daytona was rencemtly marked as the 3rd hottest market to invest in 2018.  We have 15 rentals here and non of them have zombies or meth heads. Lol. We also wholesale a bunch here and I can give you testimonials of buyers who are very happy that they have investments in Daytona and the surrounding areas.  

@Kristin Kiddy is right about the Daytona Beach area.  There definitely are some areas to avoid, but there are  some very good areas, too.  I live about 25 miles or so, away from there.  Daytona Beach is somewhat of a transient town and always has been.  But, it and the adjoining towns can be a good area for investors.

I have 7 properties in Volusia county, 2 in Port Orange, 2 in South Daytona, 1 Daytona and 2 in Deland, and I cannot complain. Good screening, and I stay away from beachside, not only because its rougher but also away from flood zones. Obviously people who dont know the area but visit only at bike week the beach, get that impression.

I also have two properties in Port Orange, just south of Daytona Beach. I must say, that my townhomes have both appreciated significantly to the tune of 10% each. More families looking to rent in PO, too!

As an investor in that market, I'd say you just have to know the area. If you're a remote investor from CA, you're going to get torched. But if you know the areas to target (Ormond, Port Orange, NSB to some extent) it's a serviceable area. In particular, Port Orange is rapidly improving with local government investment in the infrastructure. Have some small MFRs there and last vacancy I had we had ten people sitting in the parking lot to see it at 0800.

You know guys... With so many local investors responding to this post, maybe we should do a BiggerPockets Meet Up here in Daytona.  What do you think?

I'm going to be building (15) new SFR construction in DB, this year. (beachside). While it has it's rough parts, I've been following the market there the past (2) years and if you're a contrarian, like myself, I believe there's room for upside. I'd be happy to meet up or discuss the DB market with other BPers.

@Joseph Campbell you are going to become a rich man if you go at this the right way.   Stay Away from Daytona!  

Step up into the 300k or high as you can and you'll see some great appreciation, quality renters and shorter vacancy periods if any.

Sink as little into Dead Equity as possible, write off everything you can and after 5 to 7 yrs, when you click on my website and see:

  • 100% 80/20 680 score, NO DOC Hybrid Option Arm with 1% min. payment rate
  • 100% No PMI to $1,850,000
  • 100% No PMI- one day out of BK to $1,000,000

SELL, SELL, SELL, SELL EVERYTHING!! ha  

@Kristin Kiddy I'd love to get a Volusia meet up going!

@Kurt Jones   Great!  I will post a new Meet up discussion and we can all make a plan.

I would avoid Holly Hill, Daytona's ghetto, like the plague because the oldest profession seems to be a major profession there if you know what I mean.

The Daytona area is a bit or of my way, and my brother-in-law had frequently complained about finding a nice property that turns out to be in Holly Hill.

Nearby Ormond Beach and Port Orange seem like nice communities in comparison.

Daytona is not the best area, but we own some properties in Port Orange and Edgewater/New Smyrna Beach. Very good tenants and nice areas outside of the heart of Daytona.

Are the property taxes in those beach towns brutal? I'm on the western side and I'm sure they're lower for a comparable house but the taxes have been racing up pretty fast.

In Daytona, most of the SFH are not zoned to be rentals. The city has a map of all the parcels that you can click on and find the zoning. I almost bought a few SFH in the Daytona Beach area but the city would not allow them to be rentals. I did get a building there that is zoned for rental, and you have to get both a State License and a City License to rent property there.

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