The Florida real estate market is holding two strong competitors, but which one’s better? Read on to find out where you can make the best real estate investments- Airbnb Miami or Airbnb Tampa?
The current housing market in both cities is pretty stable, but in real estate investing, there’s always a better option. Every real estate investor wants to make the best investment decisions they can. For those interested in vacation home rentals, specifically in connection to Airbnb, finding top-performing rental properties is key. With the increased tourism and traveling this time of year, the pool of renters is getting bigger and bigger in Florida. Miami and Tampa are both hot spots, but which is better for Airbnb rentals in 2018?
Related: The 7 Best Places to Buy a Vacation Home in Florida
Making money in real estate is all about making the right decisions. Knowing where to invest in real estate, when, and how. The way to do that is through accurate and reliable data. The answers are in the numbers, and with Mashvisor, we can provide you with real estate analytics on every neighborhood in almost every city in the country. Mashvisor’s investment property calculator provides data on both traditional rentals and Airbnb rentals. With that being said, let’s get into the city level data and our analysis of the current real estate market for both Miami and Tampa.
Related: What Vacation Home Rentals Can Do for Your Real Estate Investment Portfolio
Miami Real Estate Market 2018
Miami Real Estate- City Level
- Median Property Price: $647,210
- Monthly Airbnb Rental Income: $2,535
- Airbnb Cap Rate: 0.24%
- Airbnb Cash on Cash Return: 0.24%
- Monthly Traditional Rental Income: $2,331
- Traditional Cap Rate: 0.42%
- Traditional Cash on Cash Return: 0.42%
Those are the average numbers from the data collected on Miami real estate. We’ve included data on both types of rental strategies (traditional rentals in Miami and Airbnb Miami) to give you a better idea of the current real estate market’s condition. The first thing we notice is the high median property price, which isn’t met with a great return on investment. With an average cap rate of 0.24%, Airbnb Miami isn’t doing as well as it can. Traditional rentals have a slightly higher average cap rate but still isn’t great either.
Related: Is Airbnb Miami a Smart Real Estate Investment Choice at the Moment?
At first sight, our data on Airbnb Miami rentals might scare you away, but it shouldn’t. Don’t forget, every real estate market has potential. This data is city level, and we all know how the smallest factors can make a big difference in a certain property’s performance. It all comes down to the specific investment property. Owning an Airbnb in Miami could be the best move you make for your real estate career, but that all depends on choosing the right one. It might not be the best place to buy vacation rental property in 2018, but it’s definitely got some great investment opportunities. Miami is a huge vacation spot and could hold some great investment properties. To start your search for investment properties in Miami, click here.
Properties for sale in Miami
Don’t rush away from the idea of investing in Airbnb Miami just yet. With the help of Mashvisor’s property finder tool, we were able to locate some top-performing properties in the city currently listed for sale.
Single Family Residential
- Listed Property Price: $244,900
- 2,063 sq/ft
- 3 Beds and 2 Baths
- Airbnb Cap Rate and Cash on Cash Return: 12.92%
- Airbnb Occupancy Rate: 47%
- Short description: The property is in move-in condition, is equipped with new tile and lighting, and is a pool home in a great location.
Condo/Coop
- Listed Property Price: $109,900
- 490 sq/ft
- 1 Bed and 1 Bath
- Airbnb Cap Rate and Cash on Cash Return: 12.62%
- Airbnb Occupancy Rate: 50%
- Short description: Bright and nice view, located four blocks away from the new Brickell Center and Brickell station. Pet-friendly with street parking available.
For more details on these Miami investment properties, sign up for free right now and start your search for the best investment properties out there. Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!
Note: For those of you interested in the popular short term rental destination, Miami Beach, you should know there have been some new regulations proposed. According to a news article by CNBC last month, the city is cracking down on illegal listings. Click here to read the article, and make sure you’re abiding by the city’s regulations when listing on Airbnb Miami.
Tampa Real Estate Market 2018
Tampa Real Estate- City Level
- Median Property Price: $368,521
- Monthly Airbnb Rental Income: $1,481
- Airbnb Cap Rate: 2.03%
- Airbnb Cash on Cash Return: 2.03%
- Monthly Traditional Rental Income: $1,586
- Traditional Cap Rate: 1.62%
- Traditional Cash on Cash Return: 1.62%
Right off the bat, we can immediately point out the much lower median property price for Tampa Real Estate. The average cap rate and cash on cash return for both traditional rentals and Airbnb Tampa rentals are noticeably higher than those in Miami. For those of you not willing to take a risk, based on a comparison of the city level data we have for Airbnb Tampa and Airbnb Miami, we’d say go with Airbnb Tampa. However, keep in mind that every real estate market has its good and its bad, so always do your research before making the final call.
Related: Tampa Real Estate 2018 vs. Tampa Real Estate 2017
Properties for sale in Tampa
Just like Miami, we’re giving you some top-performing properties currently listed in Tampa. If you’re interested in searching for Airbnb rentals, or any other real estate investment property, sign up for Mashvisor for free to use our property finder tool.
Single Family Residential
- Listed Property Price: $220,000
- 1,576 sq/ft
- 4 Beds and 2 Baths
- Airbnb Cap Rate and Cash on Cash Return: 9.90%
- Airbnb Occupancy Rate: 64%
- Short description: Great property with a new roof and kitchen. Great layout with an office/library space and a large bonus room for formal dining/family room.
Condo/Coop
- Listed Property Price: $90,000
- 1,554 sq/ft
- 3 Beds and 3 Baths
- Airbnb Cap Rate and Cash on Cash Return: 11.65%
- Airbnb Occupancy Rate: 48%
- Short description: Located in the Tampa International Airport area is this beautiful and immaculate condominium. It has an updated kitchen with wood cabinets and plenty of storage space.
For more details on these properties, and to search for other Tampa real estate properties, click here.
