Looking for First Purchase Florida/Tampa/Orlando

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Looking for First Purchase Florida/Tampa/Orlando

David Coatney
Member since 2019 · 10 posts · 1 vote

I read and see that Tampa/Orlando/Jacksonville are the best Florida Markets for rentals at this time.  This will be our first purchase for a unit to be rented full time.  We planned to stay away from Jacksonville initially due to the crime rate and focus on Tamp and Orlando. Any advice for these areas and also Florida in General.

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Matt MacDonald
Jacksonville Florida · Member since 2019 · 56 posts · 37 votes
7y

I've lived in Jacksonville for over 25 years and I have been a Landlord and Tenant for over 20 years here. I have also worked in real estate and property management for over 15 years in Jacksonville. Jacksonville like all places has it's good parts and high crime rate areas. Pros for Jacksonville you can still get a good house for under $250,000.00, where I'm at in 32225 there's a Navy Base and Coast Guard Base about 15 minutes away, a lot of banks, hospitals, CSX and other companies for employment. You can still get a type C property/investment between $100,000.00 and $150,000.00 here. My biggest con is the heat. It gets so hot here from June to September. 

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  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    7y

    @David Coatney I'm curious to learn why Flordia is the spot! I'd love to hear what numbers/cap rates typically look like in those areas. I'm all in on OKC, but love to build reference points so I can give more well-rounded advice/comparables when it's requested. 

    2Reply
  • Kristin Kiddy
    Real Estate Agent · Ormond Beach, FL · Member since 2017 · 216 posts · 158 votes
    7y

    Orlando is a huge area and it varies greatly with respect to rentals, crime, etc.  If you are looking at vacation rentals, you have to be outside the city limits.  The market is so competitive I think it is hard to make a profit.  My husband and I looked at vacation rental (having had one in Colorado) and we could not make the numbers worth our while.  We also investigated long term rental options, but we decided to have our properties closer to us for ease of management and also our better knowledge of our local market.

    4Reply
  • David Coatney
    OP
    Member since 2019 · 10 posts · 1 vote
    7y

    Kristin,

    I was thinking of year round rental in Orlando or Tampa, but considering other areas to.  We have a retirement home there that rents about 40% of the time, and a daughter in Sanford.  She is in a 3 bedroom condo that rents for $1350.  I was thinking of something like that.  Let me know if you see anything that might make sense to look at.

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  • David Coatney
    OP
    Member since 2019 · 10 posts · 1 vote
    7y

    Allysa, we have ties to the area as we plan to retire there and have a daughter. The growth in Orlando and Tampa is very strong and should continue to be provided the Tax situation does not change, in my opinion.

    1Reply
  • David Coatney
    OP
    Member since 2019 · 10 posts · 1 vote
    7y

    @Kristin Kiddy.  We also read that West Palm Beach is an excellent area.  Do you know anything about that area for either single family rentals or vacation rentals?

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  • Matt MacDonald
    Jacksonville Florida · Member since 2019 · 56 posts · 37 votes
    7y

    I've lived in Jacksonville for over 25 years and I have been a Landlord and Tenant for over 20 years here. I have also worked in real estate and property management for over 15 years in Jacksonville. Jacksonville like all places has it's good parts and high crime rate areas. Pros for Jacksonville you can still get a good house for under $250,000.00, where I'm at in 32225 there's a Navy Base and Coast Guard Base about 15 minutes away, a lot of banks, hospitals, CSX and other companies for employment. You can still get a type C property/investment between $100,000.00 and $150,000.00 here. My biggest con is the heat. It gets so hot here from June to September. 

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  • Mike Celli
    Washington, DC · Member since 2019 · 81 posts · 38 votes
    7y

    @Matt MacDonald lots of great employers around there!

    1Reply
  • Account Closed
    Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    7y
    Originally posted by @Alyssa Dyer:

    @David Coatney I'm curious to learn why Flordia is the spot! I'd love to hear what numbers/cap rates typically look like in those areas. I'm all in on OKC, but love to build reference points so I can give more well-rounded advice/comparables when it's requested. 

    I am in the central Florida market and I think the draw for most is the growth that it has, retirees and working class are moving here to get away from the snow and the income taxes.

         That being said I also think the market is over priced for rentals and the numbers don’t work unless you have a good system to bring in deals.  Even the wholesalers that I get fed deals from are providing things that won’t make money for over a decade with rental increases and probably a refinance of debt, unless you pay cash but then the return in investment is 3/4% at best.  

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  • Account Closed
    Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    7y
     @David Coatney:

    I read and see that Tampa/Orlando/Jacksonville are the best Florida Markets for rentals at this time.

    My answer to that is that since it is already in the news the train has left the station for reasonably priced rentals.  I’m not saying there isn’t any good deals out there but it’s very few and mostly require a deal funnel that is your own.  Have to get a off market deal from a desperate seller.

    1Reply
  • Kristin Kiddy
    Real Estate Agent · Ormond Beach, FL · Member since 2017 · 216 posts · 158 votes
    7y

    @David Coatney, West Palm is a little too far south for me...I don't know the area.  I like Sanford and considered a rental investment there.  I like what they are doing with the downtown.  But the prices are higher in Sanford than in my area.  With an aggressive offer strategy and a willingness to rehab, there are still properties that can work as rentals here, @Account Closed  So long as you can accept a realistic rate of return.  I agree it is hard to find a steal.

    0Reply
  • David Coatney
    OP
    Member since 2019 · 10 posts · 1 vote
    7y

    @Kristin Kiddy   Thanks for the input.  This is all pretty preliminary for my wife and I, but hoping to find something within 6 months.  We currently live in Western NY so it would initially all be from long distance.  Thanks for the response.

    0Reply
  • Jakari Mayers
    Foreclosure Specialist · Orlando, FL · Member since 2016 · 4 posts · 1 vote
    7y

    @David Coatney message me. We have cash flowing properties being sold as we speak

    0Reply
  • David Coatney
    OP
    Member since 2019 · 10 posts · 1 vote
    7y

    @Jakari Mayers Thanks for responding.  We are in the very early stages of the process of learning about and acquiring Single Family options in Florida.  Very interested in foreclosures that we could turn into Cash Flowing assets. Probably a bit away from a purhase offer as we are getting up to speed on the process. Thanks again.

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  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    7y

    @David Coatney I thought I already responded to this thread but am not seeing my post. The Orlando rental market is strong and not going to be declining any time soon. Universal just announced it is building a new theme park that is estimated to provide 5500 new jobs. Disney and other tourism outlets are always hiring and I read a stat the close to 100k people moved to Florida last year (not all of them to Orlando). The state school UCF (National champs 2018) is growing like gangbusters so there is always a need for student housing if you are into dealing with that type of tenant. Sanford is experiencing good growth due to the many corporate company locations up in Lake Mary like Verizon and Deloitte to name a few. There are still some areas in Sanford you would want to avoid though. I have a rental here and am helping my father find one in the area also.

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  • Andrew Davis
    Investor · Asheville, NC · Member since 2011 · 833 posts · 499 votes
    7y

    @David Coatney and @Alyssa Dyer - Central Florida is a great market, I've lived and invested here for the last 6 years and have been pleasantly surprised by the growth.

    Alyssa- it's such an attractive market for investors because we are grossly under-supplied on rentals and affordable housing, our unemployment rate is less than 3%, we have a well educated work force and the economy is no longer just based on tourism. You can see these fundamentals reflected in the crazy rent growth we've seen over the last 5 years.

    Developers are putting in thousands of new units, but because ground up construction is so expensive, they all end up as "luxury" rentals which many folks are priced out of.

    Regarding foreclosures - as a % of overall sales we are at a historical low, but who knows when that will turn around. There are certainly still opportunities in the market.

    Cap Rates are certainly compressed - I've seen multi-family listings in the 4's and 5's, but that's reflective of the primary market that Orlando has become and the long term economic and occupancy outlook.

    Hope that's helpful!

    5Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    7y

    @David Coatney understood! So an appreciation focus for sure.

    @Account Closed That's more in line with what I expected, it seems like a market where it might work if you're on the ground living and breathing real estate every day, but for the most part, great deals aren't accessible. Not unless it's a very very long term play. How'd the area do in the last downturn? I'm curious if people are putting their eggs in those long term baskets, if they're buying at the wrong time in the cycle. 

    2Reply
  • Keith Watts
    Investor · Lake Mary, FL · Member since 2016 · 1 post · 2 votes
    7y

    I've lived in Lake Mary for 20 years. I recently sold 5 rentals in Sanford and 1 in Lake Mary. I only sold because of the market.. I purchased them in 015, sold in 019, invested 425k and sold for 790k. I would not invest in this area at this time..

    2Reply
  • Greg Junge
    Investor · Parrish, FL · Member since 2014 · 120 posts · 115 votes
    7y

    @David Coatney

    I'm in a similar boat and I have 2 properties under contract in the greater Orlando area. Love Central Florida from a macro and micro economic perspective.

    I'll send you a private message with more details if you'd like to connect so we can share our information and experience with Orlando.

    Talk soon!

    Greg

    1Reply
  • Greg Junge
    Investor · Parrish, FL · Member since 2014 · 120 posts · 115 votes
    7y

    @Eric C.

    I have been working with developers directly through a realtor for brand new single family houses in the Orlando area and outskirts. The numbers work beautifully with 20% down and it's a new build so cap ex should be very low for 5 to 10 years.

    This is exactly why I'm done buying older resales when the numbers work for new builds, in an appreciating market. My house that's being build has already appreciated and the expected rent went up by $150 per month.

    If anyone wants to talk more about this market or my game plan, please send me a message and we can connect.

    Best of luck!

    Greg

    5Reply
  • Account Closed
    Specialist · Tampa, FL · Member since 2019 · 15 posts · 11 votes
    7y

    @David Coatney Glad to see you are eager to invest!

    The Tampa rental market is one of the hottest in the country right now. In my experience, it seems that it is easy to find low purchase price/high returns in the Tampa market. Cap rates on most of the investment rental properties I've seen are upwards of 12-13%.

    I hope my input helped and good luck with your next venture!

    2Reply
  • Arthur P.
    Real Estate Broker · Pinellas County · Member since 2016 · 166 posts · 114 votes
    7y

    @Account Closed so happy to hear some numbers about Tampa area. Is this apartment buildings or single family? 

    0Reply
  • Account Closed
    Specialist · Tampa, FL · Member since 2019 · 15 posts · 11 votes
    7y

    @Arthur P. My specific Cap rate that I mentioned was in regards to smaller multifamily units (duplex, triplex, condos). Rental units in most areas of Tampa are a great buy-and-hold strategy. Areas like South Tampa might be highly priced because they are A-A+ neighborhoods and are still good investments- But areas like Seminole Heights, Tampa Heights, Brandon are all showing fantastic rental rates due to the high demand with a much lower buy price. Can't go wrong in the rental market in Tampa.

    1Reply
  • David Coatney
    OP
    Member since 2019 · 10 posts · 1 vote
    7y

    @Account Closed Thanks for the input.  My wife and I are still in WNY but plan to be in Florida full time in about 1.5 hears.  We will be there for a week in September and wanted to look around the Gulf Coast; Tampa being the most likely area of interest.  How long have you be associated with Tampa, either living, working, or investing?  Any special insight about initial looking around?

    0Reply
  • Account Closed
    Specialist · Tampa, FL · Member since 2019 · 15 posts · 11 votes
    7y

    @David Coatney Glad to hear you like the Gulf Coast; its beautiful and lucrative.

    I was born and raised in Tampa so I know the area very well- I know what works and what doesn't. Let's plan to meet when you are down here and I can show you the hottest areas and give you my insight on the market.

    1Reply
  • Anthony Kelly
    Real Estate Agent · Tampa, FL · Member since 2019 · 65 posts · 28 votes
    7y

    Hey @David Coatney, You are definitely honing in on the hottest areas in FL! Orlando was definitely the hottest real estate market following 08-09 but Tampa caught up quite quickly and they are both the top two cities in terms of inflow for the past several years. I'm from NY as well but I've lived in Tampa now full time for the past year and a half. Prior to moving down here, my partners and I had been investing in Tampa and St. Petersburg since 2015. Anyone saying there aren't good deals to be had in this area are not on top of the market. It's true, they are not as easy to come by nowadays since the market is saturated with Investors, but with 1. Someone who is constantly analyzing new listings and 2. Being ready to pull the trigger when a property comes on the market (Pre-approval, earnest money available, etc.), you can absolutely scoop up a deal. I suggest working with an agent who is Investor friendly and has knowledge of the rental market in particular, and can set you up with an MLS email drip which will give you an idea of whats available, and shows you when new properties come online. If you have any questions, I'd be happy to help!

    1Reply
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