Out of state investing in Daytona Beach

7 Replies

So I recently started looking at properties in the Daytona beach area mainly because I have family that is moving there from California. They bought a house in Margaritaville to live in long term. I keep reading some pretty bad posts on here from other members about how horrible and sketchy Daytona Beach is and how out of state investors will get smoked there. I have read that the further south you go the better, such as Port Orange area. Are there any other investors here that could chime in as to which areas are better than others and what areas to stay away from entirely? I want to buy 10 single family homes in the next 5 years using the BRRRR strategy because I am thinking that this will be the best way for us to keep aquiring properties without running out of capital. I'm shooting for properties under 200k at the moment. I am open to other areas near Daytona that I could drive too as well.

Daytona is okay but you you should stay out of these zips 32114 and 32117 there hard to manage even for locals. The Zips are fine in Daytona but you should have your family members drive by either way to double check the area.  Port orange is good, there is also Deland, Orange city, Debary and Deltona which are very good rental areas and not too far from Daytona. You should be able to get homes under 200 k that the class of tenant should be fine to handle.  

For someone who lives in the area I can say for sure Daytona has issues and I would avoid if possible. Ormond Beach is a very highly desirable area to live in along with Port Orange and Deland. Orange City, Deltona and DeBary have way more issues than you would think. I am more than happy to help/give you advice on the local area and where to avoid. Just PM me. I am a realtor but that’s is not the point of my post. 

Thanks for the info I will for sure check into those other areas. Seems like the consensus still stands that Daytona Beach proper isn't the best place to invest in. I'm just wanting to find some good deals semi close to family so when we go visit I could see the properties and speak in person with PMs and realtors. Thank you

Like any other city, there are different areas with different problems.  I actually think you can have a successful rental in 32117 zip.  There are some very quiet streets and neighborhoods so don't rule it out.  You will probably see a higher vacancy rate as this zip and 32114 both have a very transient rental population so they tend not to stay longer than a year.  On the other hand, these two areas still have properties priced so that you can see a good return.  And at your budget of under 200k, it's going to be difficult finding single families outside those areas.  I would also suggest you look at single family attached homes.  There are a number of them with low HOAs (or no HOAs) that would be great rental properties.  Rents here, from Port Orange to Ormond Beach are rising like you wouldn't believe and supply is at a record low.  There is a lot of opportunity for rental investment if you are willing to do some rehab.  PM me if you'd like to discuss further.  

It seems the common theme is stay out of 32114, which I agree with, but I like many parts of 32117.  All other local areas area usually pretty good.  I have done 16 properties locally, with six in 32117.  It is my favorite zip for flips.  You should get "boots on the ground" and take a look around.  There is a lot of potential.  I also have a 32117 rental, which performs amazing and has for years.  Like everything else, do your homework and connect with a local, like me, if you like.  I am licensed, also a well known investor and have done several different types of structured deals.  Best of luck.

I have a rental in Port Orange and looking for another! 

Originally posted by @Kristin Kiddy :

Like any other city, there are different areas with different problems.  I actually think you can have a successful rental in 32117 zip.  There are some very quiet streets and neighborhoods so don't rule it out.  You will probably see a higher vacancy rate as this zip and 32114 both have a very transient rental population so they tend not to stay longer than a year.  On the other hand, these two areas still have properties priced so that you can see a good return.  And at your budget of under 200k, it's going to be difficult finding single families outside those areas.  I would also suggest you look at single family attached homes.  There are a number of them with low HOAs (or no HOAs) that would be great rental properties.  Rents here, from Port Orange to Ormond Beach are rising like you wouldn't believe and supply is at a record low.  There is a lot of opportunity for rental investment if you are willing to do some rehab.  PM me if you'd like to discuss further.  

 

I saw DeLand come up in this post. Is DeLand really a good rental market? I grew up in the area until High school and make it back about twice a year to see family.