What makes for the best places to invest in real estate? Usually it is such factors as a strong economy, job creation, population growth, conducive business environment, availability of tourist attractions, and affordability. Looking for such locations for your next investment property purchase? Then consider the following 4 best places to invest in real estate in Florida:
According to Real Wealth Network, a website which aims to help people create real wealth, Orlando, Florida heads the list of the best places to invest in real estate across the entire country for the 2017. The real estate market in Orlando, which hosts about 3.3 million residents, is driven by demand from job seekers, baby boomer retirees, and students who are all looking for quality investment properties and reasonable prices. Similar to all of Florida, the demand for single family homes in Orlando has been on the rise for quite some time now.
- Median Property Price: $312,000
- Traditional Monthly Rental Income: $1,750
- Airbnb Monthly Rental Income: $900
- Traditional CoC Return/Cap Rate: 2.4%
- Airbnb CoC Return/Cap Rate: 2.9%
As the data from Mashvisor’s rental property calculator reveals above, Orlando, Florida as one of the best places to invest in real estate across the US this year offers some quite affordable property prices, compared to other top real estate markets such as San Francisco, Boston, Chicago, and others. (Keep in mind when looking at data from Mashvisor that the CoC return and the cap rate values are the same because the calculations assume that an investment property has been paid for fully in cash.) While the rental income from traditional investment properties in Orlando is nearly double the rental income from Airbnb rental properties, the Airbnb rental strategy is slightly more profitable according to the CoC return and cap rate. Thus, real estate investors looking for investing in Florida real estate in Orlando should consider the option of short term rentals.
It is only logical that the demand for Airbnb will be high considering the location of Orlando in the Sun Belt region, which makes it an attractive tourist destination. In terms of legislation, one of the first things which you should study before deciding to go Airbnb in any particular real estate market, although real estate investors have to pay certain taxes, this option is fully legal in Orlando. You will be excited to hear that in 2017 Osceola County and Orange County, where Orlando is located, generated more than $30 million to hosts through Airbnb renting of rooms, condos, single family houses, and other spaces.
Before you are fully convinced that Orlando is the top location for your next real estate investment property, you would like to hear that the 1-year real estate appreciation rate there is forecast at 12.6% and the 3-year appreciation rate at 38.4%.
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The next city in the list of the best places to invest in real estate in Florida is Tampa. The Tampa Bay metropolitan area is densely populated by over 4 million people. In addition to being a top tourism market, Tampa also hosts a number of Fortune 500 companies, which makes it a popular choice for both long-term and short-term tenants.
- Median Property Price: $346,000
- Traditional Monthly Rental Income: $1,760
- Airbnb Monthly Rental Income: $1,640
- Traditional CoC Return/Cap Rate: 2.7%
- Airbnb CoC Return/Cap Rate: 3.9%
While the Tampa real estate market is a mix of high-end real estate properties and more affordable homes, the median property price here is more affordable than in Orlando, based on data from Mashvisor’s investment property calculator. Traditional and Airbnb rental strategies measure up about equally in terms of rental income, but Airbnb is the optimal strategy according to profitability.
Fortunately for all real estate investors looking for some good return on investment in the best places to invest in real estate in the US, Airbnb is legal in Tampa. In December 2016 Airbnb and the Hillsborough County, where Tampa is located, reached an agreement that Airbnb hosts will pay local tourist development or bed taxes. This deal is expected to generate around $250,000 in revenue for the County per year if trends remain similar to those in 2016.
Last but not least, for those real estate investors looking to make money from their investment properties in a few years as well, the forecast real estate appreciation rate for Tampa is quite impressive: 14.2% for 1 year and 29.8% for 3 years.
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Another of the best places to invest in real estate in Florida for 2017 is Jacksonville. The area with a total population of 1.3 million people has been experiencing constant population growth at about 2.2% per year in addition to workforce growth at twice the national average. This makes for one of the best places to invest in real estate, right? Demand from tenants is expected to remain strong in the coming years as these trends are forecast to continue.
- Median Property Price: $273,000
- Traditional Monthly Rental Income: $1,160
- Airbnb Monthly Rental Income: $840
- Traditional CoC Return/Cap Rate: 1.8%
- Airbnb CoC Return/Cap Rate: 1.3%
Jacksonville is the most affordable of all best places to invest in real estate in Florida so far with regards to real estate investments. Here though the better strategy is traditional even if only slightly more profitable than Airbnb.
Jacksonville, Florida is a great location for buying a rental property from which to make money in the long run too due to the high expected real estate appreciation rates: 7.5% for 1 year and 20.2% for 3 years.
Note: Want to find investment properties in Jacksonville? Click Here!
4. Cape Coral
- Median Property Price: $299,000
- Traditional Monthly Rental Income: $1,660
- Airbnb Monthly Rental Income: $2,080
- Traditional CoC Return/Cap Rate: 3.3%
- Airbnb CoC Return/Cap Rate: 5.0%
Affordability is quite good. Although the median property price in Cape Coral is above the one in Jacksonville, the expected rental income from traditional and Airbnb according to Mashvisor’s rental property calculator is significantly higher too. So is profitability in terms of both CoC return and cap rate. Airbnb is the better strategy here.
However, the Airbnb legal situation in Cape Coral is a bit tricky as opponents of short term rentals are trying to get the City Council to impose new fees and regulations on Airbnb hosts. In May this year the Council postponed the final voting for after the end of the summer season. So any real estate investors potentially interested in Airbnb Cape Coral properties should keep their eyes open for new developments.
Note: Interested in Cape Coral investment properties? Click Here to find the best performing properties right now!
Regardless of whether one is from the State of Florida or is looking into options for out of state real estate investing, every real estate investor should consider these 4 best places to invest in real estate in Florida in 2017. Indeed, according to Real Wealth Network, these are the 4 best places to invest in real estate in the entire US, not only in the Sunshine State. In your search of your next rental property, check out Mashvisor for many, many properties in these 4 top locations and the most important real estate investment analytics and figures on them.