Are you seeking to diversify your real estate portfolio in 2022? Do you want to invest in Airbnb Navarre Fl? If the answer to these questions is yes, then you’ve come to the right place.
Home prices have been steadily rising in many real estate markets across the US. While some may have been doing well even before 2020, it is evident that they have skyrocketed since the pandemic hit the world.
In 2020, the median property price in the whole country was over $350,000. 10 years ago, this amount was about half of what it was in 2020. In the past year, the average home price has gone up by about 20% across the country and even higher in over 120 metropolitan areas.
If you’ve been thinking that the real estate market in the US is experiencing a bubble that will eventually burst, you’re wrong.
Due to this rise in property prices, many investors are finding it difficult to find good investment deals. This is why we’ve provided this in-depth overview of the Florida real estate market, why you should invest in Airbnb Navarre Fl, and how to ensure the deal you invest in is profitable.
Why Should You Invest in Airbnb Florida in 2022?
When it comes to buying investment real estate property in 2022, there are mainly two rental strategies you can follow to ensure your property generates a good income and provides you with a positive cash flow. They are:
- Traditional long-term rental strategy: This is the conventional rental strategy where you find a single tenant for your property and rent it out to them in the long-term, whether on a monthly or annual basis. Most real estate investors across the US and the world follow this strategy since it tends to be less volatile. Also, if you keep your property’s vacancy rates low, the property offers you a steadier flow of income. This sense of security entices many real estate investors.
- Short-term rental strategy: As the name suggests, this strategy involves renting your property out on a daily or weekly basis. Basically, you host guests on your property for a minimum of one night. Short-term rentals are also known as vacation rentals since they are popular with vacationers and holiday-goers. They also attract traveling business people. This strategy is great for investors in 2022 since you can earn a better income compared to the traditional strategy.
Airbnbs have become one of the most popular and profitable ways of investing in real estate. They follow the short-term rental strategy. Airbnbs in Florida do well mainly because of the tourism activities happening in most of the cities in the state. For example, Airbnb demand goes high during the summer as many people fly into Florida in search of warm weather and sunshine.
Why Choose to Invest in Airbnb Navarre Fl in 2022?
Navarre is located in a prime location. It’s in the Western Region of the Florida panhandle, sits on Santa Rosa Island, and runs parallel to Florida’s main coast. In today’s market, properties in such prime locations won’t take too long before they’re snatched up.
Travelers throng Navarre, especially during the summer, to experience firsthand the unique experiences the city has to offer.
Also, keep in mind that the Navarre Florida real estate market is steadily making a comeback. While many industries across the world were rendered almost defunct by the pandemic, the real estate sector had an entirely different story to tell.
Airbnb Navarre Fl Performance in 2021
Investing in Airbnb Navarre Fl in 2021 is going to be a lucrative venture for real estate investors in 2022. For starters, the Florida housing market has experienced steady growth over the last couple of years. Couple this up with the great weather and the tourist attraction and you can see why Airbnb Navarre Fl is a great investment.
Before you can buy property in an area for Airbnb rental investment, you need to look at the neighborhood’s performance data. That way, you can ascertain how your property will perform and how much income you can expect on average.
Here are some vital data from the Mashvisor Property Analysis Report to help us analyze the performance of both traditional and vacation rentals in Navarre Beach, Florida:
- Median Property Sale Price: $933,557
- Average Price per Square Foot: $569.97
- Traditional Rental Income: $1584.21
- Traditional Cash on Cash Return: -0.3%
- Airbnb Rental Income: $1,723.84
- Airbnb Cash on Cash Return: -1.43%
- Airbnb Daily Rate: $302
- Airbnb Occupancy Rate: 25.41%
- Walk Score: 17
As you can see, properties in Navarre have the potential to earn you more money as a short-term rental than a traditional rental. However, if you look at the cash on cash return, you’ll notice that traditional rentals have higher cash on cash return than short-term rentals.
While the Airbnb occupancy rate may be an issue, you can beat it by paying special attention to property management. This will make your short-term rental stand out.
With an average monthly rental income of $1,723.84 and the low cost of living in Navarre, your Airbnb income property will be able to settle monthly bills, such as mortgage payments and maintenance, and still leave you with a handsome profit.
Real Estate Trends in Navarre Beach, Florida
According to Redfin, in December 2021, the average property price in Florida was $756,000. This was an increase of 11.2% compared to the previous year. The median listing price per square foot was $194.
The average home spent 44 days on market, down from 248 days the previous year. 13 homes were sold in the year, compared to 12 homes the previous year.
The median listing price for single-family homes was $522,000, compared to $346,400 the previous year. As for condos and townhouses, the median price was $448,000, compared to $525,000 in 2020.
The sale-to-list ratio in Navarre Beach, Florida is 99.64%, meaning that most homes are sold for approximately the listing price. The housing market is balanced since the supply of properties matches the demand.
As of January 2022, there are 7 properties for sale in Navarre Beach, Florida on the Mashvisor platform. The properties range from $480,000 to $2,000,000.
What Brings People to Navarre Florida
One of the main reasons that bring people to Navarre Beach is Navarre Beach itself. The beach has a photogenic aura with its immaculate white shores and clear Gulf water. Simply carry along your swimwear and beach sports equipment, and go explore what the beach has to offer. You can bring your own food and drink too. Remember to get a high-quality photoshoot done for you and your family to remember.
The Navarre Beach Marine Science Station was founded by marine students to help educate visitors about marine species and the ecosystem surrounding them. It’s a great place to go through a program on sea turtles and Gulf artificial reefs. Your kids will also live to remember the educational activities at the center.
You can also interact with marine life at the Navarre Beach Sea Turtle Conservation Center. The main purpose of the center is to conserve endangered sea turtles and other marine animals. The center educates communities and visitors through various programs and hands-on experiences. You will enjoy your time here as you interact with animals not usually found in ordinary zoos. Other than sea turtles, you and your kids will also see tortoises, crabs, terrapins, and sweet pea.
The Navarre Beach Fishing Pier is a must-visit when in the area. This is the longest fishing pier in Florida, where you can take a casual stroll for only $1 per person. The water here is clear, allowing you to see dolphins, turtles, rays, and a lot of various other species of fish. You can also enjoy surfing or fishing. Just like the beach, the fishing pier isn’t overcrowded.
For food lovers, you can buy seafood at the Navarre Seafood Market, where there’s a great collection of high-quality seafood. You’re spoilt for choice as you can choose to buy fresh and locally sourced fish, shrimp, oysters, crabs, crawfish, and more. There’s also an option to steam your seafood, which many visitors love.
If you’re looking to enjoy some handcrafted beer after a full day of activities, the St. Michael’s Brewing Company is the place you’re looking for. It’s located at the heart of Navarre and many visitors and locals as well enjoy their craft beers. You simply have to go to the taproom, relax and sample a myriad of beers from their extensive collection. They also have a big and nice beer garden where you can sit outside, enjoy the breeze as you indulge in a pint or two.
Many visitors want to carry souvenirs and gifts for their loved ones when they visit a new place. The Salt Water Cottage is a gift shop that stocks local art, jewelry, home decor, books, gourmet food, and many other memorabilia. This is the oldest cottage and only original one in Navarre, where you’ll be welcomed by a large collection of books as you walk in. You can also find rugs, baskets, and towels made from recycled material. The items are locally-sourced.
How to Invest in the Best Airbnb Navarre Fl
Choose the Most-Suitable Property Type
The property type you choose to invest in will be a huge factor in determining the occupancy rate and how much income you can earn from the vacation rental. Popular property types are determined by the location.
For example, Airbnb condos, apartments, and townhouses tend to be more popular in commercial districts that receive a lot of business travelers. On the other hand, single-family homes will have a higher demand in small towns.
Also, decide on the number of bedrooms you want on your property. Solo travelers and couples will tend to stay in one-bedroom units or studio apartments. Families or traveling groups, on the other hand, will book a short-term rental with a number of bedrooms.
Use the Mashvisor Neighborhood Analytics feature to research what property type is best for Airbnb investment in Navarre Beach. This is an AI tool that collects accurate data from the Airbnb platform and other short-term rental sites to figure out the number of bedrooms and property types suitable in that area.
Get Your Numbers Right
Your budget is one of the core factors that determine where you invest in and what properties you can afford. Pay special attention to your budget since if you end up spending way beyond your budget, the harder it’ll be for you to earn a positive cash flow and a high return on investment.
Set a budget that you’ll be comfortable with and that won’t overstretch your finances. Remember, you also don’t want to default on your mortgage and other bills. Here’s what you need to consider when creating your budget:
- Closing costs: This is the money you spend to settle the closing fees, which amount to 2% of the buying price
- Furnishing costs: This amount varies depending on the amount of work required to carry out furnishing fittings and other decorative accessories, such as curtains and carpets. It also depends on whether you’ll have to work with a professional decorator
- Repairs: In some cases, you’ll have to carry out some repairs or remodel the house to be more attractive. Set a maximum budget to factor this too.
- Business Registration: You’ll have to acquire registration with the Navarre Beach authorities to get the necessary licenses
Also, don’t forget to have some extra money for miscellaneous costs. You may need to obtain a few things for your first few bookings, hire a property manager and advertise your property through various means.
Search for Property
Having in mind the amount of work it involves, including market analysis, finding Airbnb property in Navarre, Florida may seem like an uphill task. However, with Mashvisor Property Finder, you don’t have to lose your sleep over this process.
The Property Finder is a property search tool that comes with a set of gadgets and features to help you find the most suitable and profitable property for you to invest in.
How do you use this tool?
Simply enter the name of any city, neighborhood, or street address that you may be interested in, in the smart search bar. You can also use the interactive map to select any area and see the properties in that neighborhood.
The properties are displayed along with their details, such as property price, traditional and Airbnb cash on cash return, traditional and Airbnb rental income, and Airbnb occupancy rate.
You can use the filters to narrow down your search based on the following criteria:
- Property price range (budget)
- Cap rate
- Property type
- Cash on cash return
- Number of rooms
- Year built
- Property Status (for sale, foreclosure, pending or sold)
In addition, the Property Finder also has a heatmap tool that shows you each neighborhood’s performance based on property price, rental income, and return on investment for both Airbnb and Traditional rentals.
Use Mashvisor Tools for Real Estate Investment
As we’ve seen, real estate investing in Airbnb Navarre Fl will be a lucrative venture in 2022. While there’s a lot of potential in the investment, it can be a risky business decision to make. To avoid committing any grievous mistakes and losing your hard-earned money, utilize Mashvisor tools.
The platform is a go-to resource for finding lucrative real estate investment opportunities for both newbie and seasoned real estate investors looking for ways of making money in real estate. Luckily, the tools are rather straightforward and don’t need you to take a lot of time learning how to use them.
Sign up today and get a 7-day free trial.