SE Florida Vs SW FL Cash Flow

7 Replies

Good Morning Everyone,

I recently moved to Miami  and looking to invest (syndicate). I'm not asset specific but I would like to be geographically focused. 

I'm trying to understand the differences in the market between the East and West coast of Florida in terms of competitiveness, cash flow, and opportunities.

PS: East Coast for me would be anywhere south of Brevard County, and Gulf coast would be anywhere South of Tampa (Tampa included).

I appreciate any feedback and help!

Thanks! 

Welcome to MIA REI.

As a Miami investor I can give you my take on the SE FL market.

We are seeing a lot of growth down here especially with all the news surrounding all the tech companies trying to grab up space in the downtown financial districts (think Microsoft in Brickell). 

While this is great it definitely correlates to the extreme price increases you will see in both the single family and multifamily housing markets. Given that you will most likely have a much harder time finding stronger cashflow investments here vs the SW.

But with that lower cashflow you could reasonably expect to gain significant equity and appreciation under a long term holding strategy vs potentially lower price points on the west coast. Housing shortage is a big factor and new build's won't alleviate that pressure anytime soon.

The barrier to entry will be a bit higher over here with median single family homes hovering around 500K but with 10-12% YoY appreciation would you prefer a lower cost asset that puts 250 per month in your pocket?

I don't think I would.

Good luck!

@Levi Gold - welcome to Miami! As an FYI, it's South Florida; no one says SE Florida. S. FL is understood to be the 3 big counties (you can squeeze Martin in there if no one's looking). Rents are very high in S. FL but as @Jason Brown alluded to above, prices are also very high. In fact, don't bother with multi-families because they've been a premium since at least 2015. Where you can come out ahead is STRs.....if you find a place that allows it, you'll be golden. Otherwise, park your money in other parts of Florida. The surprise (which I found out after moving to Brevard) is that a number of areas in Florida have some of the best deals in real estate. Just not down South.

Promotion
Ashcroft Capital
A national multifamily investment firm
Three Reasons Investors May Prefer Real Estate
Read three reasons why investing in real estate private placements may provide several advantages.
Read More Here
Originally posted by @Tchaka Owen :

@Levi Gold - welcome to Miami! As an FYI, it's South Florida; no one says SE Florida. S. FL is understood to be the 3 big counties (you can squeeze Martin in there if no one's looking). 

 I disagree.  Southeast FL and Southwest FL are very much their own bubbles and are spoken about separately. Very different markets.  There is minimal overlap between developers, contractors, architects/engineers.  Also very different culturally. 

Originally posted by @Jon H. :
Originally posted by @Tchaka Owen:

@Levi Gold - welcome to Miami! As an FYI, it's South Florida; no one says SE Florida. S. FL is understood to be the 3 big counties (you can squeeze Martin in there if no one's looking). 

 I disagree.  Southeast FL and Southwest FL are very much their own bubbles and are spoken about separately. Very different markets.  There is minimal overlap between developers, contractors, architects/engineers.  Also very different culturally. 

You might take a moment next time to comprehend what was written before responding. You appear to be disagreeing with a point someone else might have made.

@Levi Gold Welcome to Florida. The main difference I've found between the east coast and West coast of FL. Is that the home prices tend to be higher on the West coast (Naples) and nightly rate tends to be lower on the West coast compared to the East coast. I own STR's in WPB and I have been looking in Naples for the same numbers since March of 2021 but haven't had any luck. The supply seems to also be lower on the West coast as well.

You mentioned that you're looking to syndicate do you have any experience with raising capital within your W-2 or outside?