Are you seeking to diversify your real estate portfolio in 2022? If yes, Airbnb Sanford FL should be one area of interest to watch out for.
The US housing market experienced a lot of growth in the past few years. While other industries were almost pushed to obsolescence during the pandemic, the real estate market was able to go through the challenges with a different story to tell. It thrived even more, with home prices in some locations hitting record numbers.
If the trend looks suspicious to you, worry not. According to real estate experts worldwide, it is not a bubble that will burst any time soon. The trend is here to stay with us.
While it may be a positive thing, there’s a catch to it. It’s making it increasingly hard for investors to find affordable properties. The difficulty is attributed to the high demand and prices, yet short supply of real estate. This is not to scare you. With the right real estate investment tips and strategy, you can be successful in your future venture.
This is why we’ve done all the heavy lifting and compiled this comprehensive guide on investing in Airbnb Sanford FL and what trends to look out for in the local real estate market.
Why Invest in the Florida Housing Market?
The only proper way to gain insight into Sanford FL investment properties is by looking at the larger real estate market in Florida. As a real estate investor, you also know it’s always best to look at the bigger picture and consider factors such as property taxes, population growth, property prices, and many others.
Despite the pandemic and other consistent economic stressors, the Florida real estate market has grown to be one of the hottest markets in the US. According to the latest data by Florida Realtors, the state’s housing market wrapped up 2021 with more sales, higher median property prices, and more listings compared to the previous year.
In 2021, there were over 528,000 property sales in Florida, up 19% from 2020. Existing single-family homes sales totaled 350,516, representing an increase of 12.9%.
The statewide median home price for single-family homes was $348,000, a 20% growth from the previous year. In 2021, new pending sales for the existing single-family homes rose by 5.7% compared to 2020. New listings for single-family homes also climbed 7.1% from the previous year.
The above statistics show that Florida real estate market investors will continue to experience an opportunity of their lifetime. Remember, properties in hot markets don’t sit around the market for long before investors grab them.
Why Invest in Airbnb Sanford FL?
Airbnb data is one of the most reliable indicators of whether investing in a certain location is going to be worth it. This is why it’s essential to look at Airbnb data and analytics for the specific location when carrying out market analysis.
Here’s important data from Mashvisor’s Property Analysis Report for Sanford FL, as of January 2022. Pay close attention to the figures associated with the Airbnb rental strategy.
- Median Property Sale Price: $351,139
- Average Price per Square Foot: $216
- Traditional Rental Income: $1,529
- Traditional Cash on Cash Return: 3.10%
- Airbnb Rental Income: $2,912
- Airbnb Cash on Cash Return: 5.08%
- Airbnb Daily Rate: $119
- Airbnb Occupancy Rate: 60%
- Walk Score: 69
The above information shows that investing in Airbnb Sanford FL is an excellent opportunity for investors. The Airbnb rental income and cash on cash return statistics demonstrate that it’s more profitable to own a short-term rental in Sanford FL than a traditional rental in the same location.
Also, remember that the cost of living in Sanford is relatively affordable. With an Airbnb rental income of $2,912 per month, you’ll make enough money to settle monthly expenses, such as maintenance and property management fees, and remain with a handsome profit.
The occupancy rate is also above average, meaning that the Airbnb demand in Sanford is favorable for investors.
Sanford FL Housing Market Trends 2021
According to Redfin, in December 2021, the average property price in Sanford FL was $295,000, up 15.7% from the previous year. The median listing home price per square foot was $186.
On average, properties in Sanford FL spent an average of 10 days on market in 2021, compared to 12 days in the previous year. A total of 121 properties were sold in the Sanford FL housing market, compared to 140 homes previously.
The sale-to-list price ratio was 100%, meaning that homes in Sanford FL sold for approximately the asking price. The location is also a seller’s market, meaning that more people are looking to buy than there are listed homes.
As of February 2022, there were 34 homes for sale in Sanford FL on the Mashvisor platform. The properties range from $147,000 to $875,000 in prices, meaning that you can invest in the Sanford real estate market even without a lot of capital.
Why Is Sanford FL Attractive for Investors in 2022?
Short-term rental businesses thrive in tourism hubs. Florida is a major tourism destination in the US. It makes Sanford a great prospect for the Airbnb business. The high traffic of travelers and vacation-goers also boosts Airbnb demand across the city.
Things to Do in Sanford FL
Perhaps, the most popular destination in Sanford FL is the Central Florida Zoo and Botanical Gardens. The 116-acre animal sanctuary and arboretum is popular among holiday-goers interested in experiencing the natural world. The attraction includes 400 animals and various distinct cultivated gardens. You’re going to stay entertained and engaged during your time here.
Art lovers can visit the Wayne Densch Performing Arts Center, which houses a theater showing various performances, ranging from plays and concerts to films and musicals throughout the year. Founded in 1923, the center still retains much of its old character and intimate ambiance.
The Jeanine Taylor Folk Art is a locally owned contemporary art gallery. It was established in 1997, with the primary goal of preserving Florida’s rich artistic culture. It showcases arts from local art legends and hosts various rotating exhibitions and special events throughout the year.
Traveling can be an expensive experience that drains your bank account. As such, it’s quite special when you come across a free attraction that’s also educational. The Sanford Museum, which opened in 1957, is the city’s most complete repository of anything related to local culture, history, and economy. The museum displays historic photos, documents, and first-hand accounts of life in past years.
For beer lovers, Deviant Wolfe Brewing offers a wide range of quality and handcrafted beers for you. It’s a locally-owned microbrewery located at the heart of historic downtown Sanford. There’s a selection of specialty draft and bottled beers brewed using locally-sourced ingredients and seasonal additives. Visitors can order food from the nearby restaurants and get it delivered to the taproom.
A holiday in Sanford FL would never be complete without a visit to Walt Disney World, perhaps the most popular resort in the Sunshine State. It’s a must-visit, especially if you’re traveling with your kids. There are enough attractions and activities to enjoy even if you visit often. They include the Magic Kingdom Park, Epcot, and Animal Kingdom Theme Park. There are also a number of activities popular with adults, such as food and wine, and art and craft festivals.
LEGOLAND Florida Resort is another great place to visit with your kids. There are many activities that encourage you and your kids to be creative. The resort also includes exhibits that touch on the natural world, culture, history, and arts. Visitors are encouraged to get active through various activities that not only involve Lego bricks.
Ordinances Surrounding Airbnb Sanford FL
According to the Seminole County Ordinance 2020-06, effective from October 1, 2020, these are the laws and regulations that short-term rental owners in Sanford FL should adhere to:
- Property owners who want to rent out their property for less than 30 days are required to register with the county annually for a fee of $250 per year. Homes rented for more than a month are considered long-term rentals and are subject to different regulations.
- Each vacation rental should be limited to two people per bedroom and no more than four children under 13.
- Each home must have a fire extinguisher centrally located near the sleeping rooms.
- Loud noises are forbidden from 11 p.m. to 7 a.m.
- Every house must have enough parking for at least two cars. Guests should not park on sidewalks or bike paths.
The list of laws and regulations above may not be up to date and complete. We advise you to call or visit your county and state governments for updates and clarifications before investing in Airbnb Sanford FL.
Choosing the Best Airbnb to Invest in Sanford FL In 2022
Finding an Airbnb property to invest in is not as simple as picking the cheapest house on the market, but it’s also not too complicated. You just need to do some planning and research to make sure that the property you end up buying will earn solid returns. Here are three steps to get that done:
Choose a Property Type
The first step towards investing in Airbnb Sanford FL is determining which property type to buy. Doing so is crucial since it also depends on what audience you’re targeting to book your property.
For example, if you want to target traveling families or large groups, it makes sense to invest in a family-style property with several bedrooms. If you’re targeting solo travelers or couples, it would be more suitable to invest in a studio apartment or one-bedroom Airbnbs.
While trying to understand which property type would be best for your investment may seem like an uphill task, it doesn’t have to be so. Mashvisor Neighborhood Analytics tool helps during your research on the best property type to invest in for Airbnb Sanford FL. With this tool, you can customize your search based on your budget, preferred property type, and the number of bedrooms and bathrooms to get the most accurate data.
Set a Budget
Setting a budget is a key aspect of real estate investing. If you pay a high price for your property, you’ll find it difficult to earn a favorable return on investment and generate a positive cash flow. You may be prompted to raise your nightly rates, which may push guests away.
You need to set a budget that you’re comfortable working with. It also shouldn’t put you at risk of defaulting on your mortgage.
Here’s what your budget needs to include:
- Selling Price: How much are you willing to pay for the investment property?
- Closing Fees: These are the costs you need to settle to facilitate the completion of the transaction. They amount to 2% of the buying price, so factor it into your budget.
- Repairs and Remodels: Some properties may be in need of repairs. Set a budget for that and add more features to make it more modern and appealing.
- Property Registration: Remember we mentioned that Airbnb owners in Seminole County need to register their properties with the relevant authorities? Add the relevant cost for licenses and registration to your budget.
Other than these fees listed, also set some money aside for miscellaneous costs, such as property management agency fees. Also, sometimes some unforeseen circumstances may compel you to spend more money.
To avoid any surprises in your pocket, use the Mashvisor Investment Property Calculator. The tool helps you establish the profits and the cash flow your investment property can generate. The Airbnb calculator uses up-to-date data and trends to help you carry out property analysis and generate accurate estimates.
Search for a Property
By this stage, you’re now ready to search for Airbnb income property income in Sanford FL. Due to the high Airbnb demand in Sanford FL, you may find it quite hard to find suitable vacation rental property to invest in.
This is where the Mashvisor Property Finder tool comes in. You can use it to search for listings in any location and find the best to invest in. The tool also helps you filter the search results based on the following metrics:
- Property type
- Rental strategy (Traditional vs. Short term rental strategy)
- Number of bedrooms
- Number of bathrooms
Once you’ve found the ideal property, you can now buy it, list it on the Airbnb platform and start earning from your investment.
Next step: How to Evaluate an Airbnb Investment
You’ve probably considered investing in real estate and Airbnb property because you want to generate passive income. You want to start making money in real estate without even having to lift a finger. However, it doesn’t come easy. A lot of work goes into the initial stages if you want to nail this investment strategy.
However, real estate investment tools make everything easier for you. Mashvisor tools will help you carry out accurate analysis based on data gathered from reliable resources, search for suitable investment properties, and do the proper calculations.
Over the years, Mashvisor has helped both beginners and experienced real estate investors. It’s your go-to resource center when you want to invest in an Airbnb Sanford FL property. To learn more about Mashvisor’s tools, sign up for a 7-day free trial.