I'm considering building a duplex on a lot that my father purchased back in the 90s in Palm Coast Fl. My biggest concern is the rental market in Palm Coast. I currently have SFH, Duplexes and Small multi- families in South Florida and they are all a cinch to rent out, but the properties are old and I'm really looking forward to investing in newer or brand new properties. Does anyone have knowledge of the rental market in Palm Coast, is it strong? Does anyone have ideas on how I can research the rental market. Obviously the home builders are suggesting it is strong, but I can't base my decision on what the builders say.
@Wendy Lavana Hope to see you next week at our monthly women’s group listed on events page.
@Wendy Lavana You could look for a place similar to what you are going to build to see if there is a bunch of inventory. Additionally you can look on rentometer near the lot to see what the market rent data suggests.
The Palm Coast rental market is a little softer than here in Daytona Beach. There are a lot of duplexes and sfh that are offered for rent. More competition = tighter window for rents and more difficulty attracting good qualified renters. You will have to make a plan about how you are going to stand out from your competition. Also, it really depends on which section of Palm Coast this lot is located in. Some letters are more coveted than others. It also affects which schools you tract to. And plan on building 3/2s. Much easier to rent a 3 bed than a 2 bed.
@Kristin Kiddy Thanks for the advice. The lot is in the F section. I may be better off selling the lots and purchasing a duplex elsewhere, I'll need to do more research. Just love the idea of owning newer property, most my rentals were built in the 60s.
@Wendy Lavana F section is a great area. Very popular. If your lot backs to water, I would definitely looking into selling, that or building a spec home to sell. I think you would get more return that way. Regular lots aren't super expensive and there are still quite a number available. It would be best for you to interview some contractors and get a more solid idea of cost to build. Then you can determine which direction to go in.
@Kristin Kiddy Thanks for the info. Are you aware of any multifamily deals in Daytona, even duplex type properties?
@Wendy Lavana they show up every now and then. Pm me and i can give you more details.
The biggest problem with Palm Coast is the job market. Good wages are not easy to find in Palm Coast, so quality of tenants might be a concern.
The rental market is a roller coaster here in Palm Coast. Some rent in hours other stay on marker for weeks. There is a home just around the bend from my house that rented the first time in less than a weeks. The tenants we good and the house is in great shape. They had to break the lease and move, now it has been on the market over a month. The owners are fair and on par in the price and have many other properties. My opinion is that there is an increase in rental that are available because the tenants have repaired there credit from the crash and have the income to buy a house. Yes the builders are killing it now and with a hand full of discount builder people can own again for less then rent. I have been looking for a rental property for about a year and haven't been able to pick one up because the ROI is just too low and the cash flow is poor. The investors with very deep pockets are over paying for the REO's just to have the volume. They don't care if it sit vacant, the property will hold better than the unknown on the stock market or any other type on investment with this crazy political climate.