Part of knowing how to make money from rental properties is being able to find the best places to invest in real estate. If you are looking for houses to buy for investment in 2021, consider purchasing an income property for sale in Florida. The Florida real estate market is one of the most vibrant and most profitable in the US.
Looking for the best places to invest in real estate in Florida in 2021? This guide is designed for you. However, before listing the best places to invest in real estate in Florida, let us consider some reasons why buying a house in Florida is worth considering in 2021.
- Population growth – Also known as the ‘Sunshine State’, Florida is the third most populous state in the US. According to the US Census Bureau, the state experienced an increase of about 241,256 residents between July 2019 and July 2020. This population growth means a steady supply of tenants if you plan to buy rental property to rent out traditionally.
- Job growth – Florida boasts a thriving economy boosted by industries like healthcare, aerospace, and international banking. It is home to a number of Fortune 500 companies like Auto Nation, Hertz, Office Depot, and Lennar Corp. According to the Bureau of Labor and Statistics, Florida has one of the fastest job growth rates in the US. Therefore, investing in homes in Florida is a great way to make money in the short term and to grow your wealth in the long run.
- Unique lifestyle – With its beautiful weather, stunning beaches, and numerous landmarks, Florida is often considered as one of the most desirable places to live. As a result, it keeps attracting more short-term and long-term visitors, which creates demand for both rental strategies.
- Vibrant real estate market – According to Zillow, the median home value of a Florida house was $270,560 in January. This was an 8.6% increase over the previous year. Such figures show that Florida is one of the cheapest states to buy a house, with the potential to make a good return on investment.
Related: Where to Buy Florida Multi-Family Homes for Sale
Just like in other states, the Florida real estate market was adversely affected by COVID-19. In the second quarter of 2020, year-over-year closed sales of single family properties dropped by 19.2%, while closed sales of condo-townhouse homes went down by 33.9%. However, recent data from Florida Realtors shows that the local housing market is gaining momentum. In January 2021 the year-over-year closed sales of single family properties went up by 18%, while closed sales of condo-townhouse homes increased by 24%. The sale prices of cash flow properties have also increased greatly over the past year. This means that 2021 is a good time to find the best places to invest in real estate in Florida.
Best places to invest in Florida: Traditional rental property
Wondering where to invest now in traditional rentals? You can find the best places to invest in real estate easily using Mashvisor’s data, whether you’re thinking of buying in a buyer’s market or a seller’s market.
We at Mashvisor have conducted detailed 2021 Florida real estate market analysis using data from multiple reliable sources. Based on the traditional cash on cash return metric used in our analysis, here are the best cities in Florida where you can find the most profitable property investments right now:
1. Inverness, Florida
- Median Property Price: $213,975
- Price per Square Foot: $128
- Price to Rent Ratio: 14
- Monthly Traditional Rental Income: $1,255
- Traditional Cash on Cash Return: 4.72%
2. Greenacres, Florida
- Median Property Price: $197,309
- Price per Square Foot: $160
- Price to Rent Ratio: 12
- Monthly Traditional Rental Income: $1,405
- Traditional Cash on Cash Return: 4.44%
3. Venice, Florida
Venice, Florida
- Median Property Price: $408,628
- Price per Square Foot: $290
- Price to Rent Ratio: 16
- Monthly Traditional Rental Income: $2,126
- Traditional Cash on Cash Return: 4.28%
4. Lake Worth, Florida
- Median Property Price: $284,498
- Price per Square Foot: $912
- Price to Rent Ratio: 14
- Monthly Traditional Rental Income: $1,724
- Traditional Cash on Cash Return: 4.18%
5. Miami Gardens, Florida
- Median Property Price: $284,249
- Price per Square Foot: $188
- Price to Rent Ratio: 14
- Monthly Traditional Rental Income: $1,721
- Traditional Cash on Cash Return: 4.14%
6. St. Petersburg, Florida
- Median Property Price: $310,154
- Price per Square Foot: $223
- Price to Rent Ratio: 16
- Monthly Traditional Rental Income: $1,590
- Traditional Cash on Cash Return: 3.78%
To find out how Mashvisor can help you find a profitable traditional rental property in the Florida real estate market, schedule a demo with our team.
Best places to invest in real estate in Florida: Airbnb rental property
With its great weather and varied attractions, Florida continues to attract many local and international visitors. According to Forbes, 6.6 million people booked a vacation home via Airbnb in 2019, with hosts generating total revenue of $1.2 billion. With the rollout of the Covid-19 vaccine, this trend is expected to resume in 2021. Moreover, Florida is one of the most Airbnb-friendly states in the US. Under the current state laws, cities are not allowed to regulate Airbnb. If you are looking for an ideal Airbnb location, Airbnb Florida fits the bill.
Related: How to Invest in Vacation Rental Property in 2021
Based on Mashvisor’s real estate data, here are some of the best places to invest in Florida real estate for the Airbnb strategy:
1. Jacksonville, Florida
- Median Property Price: $282,320
- Price per Square Foot: $155
- Average Airbnb Daily Rate: $129
- Monthly Airbnb Rental Income: $2,111
- Airbnb Cash on Cash Return: 4.41%
- Airbnb Occupancy Rate: 59%
2. Gainesville, Florida
- Median Property Price: $311,458
- Price per Square Foot: $143
- Average Airbnb Daily Rate: $147
- Monthly Airbnb Rental Income: $2,217
- Airbnb Cash on Cash Return: 4.40%
- Airbnb Occupancy Rate: 58%
Related: What Is a Good Airbnb Occupancy Rate?
3. Lakeland, Florida
- Median Property Price: $302,543
- Price per Square Foot: $161
- Average Airbnb Daily Rate: $110
- Monthly Airbnb Rental Income: $2,237
- Airbnb Cash on Cash Return: 4.33%
- Airbnb Occupancy Rate: 58%
4. Pensacola, Florida
- Median Property Price: $522,086
- Price per Square Foot: $235
- Average Airbnb Daily Rate: $134
- Monthly Airbnb Rental Income: $3,102
- Airbnb Cash on Cash Return: 3.96%
- Airbnb Occupancy Rate: 66%
5. Plantation, Florida
- Median Property Price: $390,892
- Price per Square Foot: $197
- Average Airbnb Daily Rate: $227
- Monthly Airbnb Rental Income: $3,082
- Airbnb Cash on Cash Return: 3.83%
- Airbnb Occupancy Rate: 64%
6. Tallahassee, Florida
- Median Property Price: $286,591
- Price per Square Foot: $157
- Average Airbnb Daily Rate: $147
- Monthly Airbnb Rental Income: $1,799
- Airbnb Cash on Cash Return: 3.66%
- Airbnb Occupancy Rate: 51%
Conclusion
Finding the best places to invest in real estate in Florida in 2021 is easy when using the right real estate investment tools. Whether you are looking for the cheapest place to buy a house or the best real estate investments, Mashvisor has all the tools you need for real estate market analysis and investment property analysis.
Related: How to Do a Real Estate Market Analysis in 2021
Start out your 7-day free trial with Mashvisor now to search for and analyze houses in Florida for sale.