Most Affordable Locations for Buying an Investment Property in the Florida Real Estate Market in 2018

With the fast-growing real estate market in Florida, more investors are becoming interested in buying an investment property in Florida real estate.

However, successful real estate investors never buy properties randomly and always make informed decisions based on market analysis to find the most affordable locations. To help you make the most out of your investment and find the most affordable locations for buying an investment property in the Florida real estate market in 2018, let us first take a look at Florida’s real estate market in 2018.

Florida Real Estate Market in 2018

All real estate indicators suggest that the Florida housing market is promising for real estate investors in 2018 in regards to buying an investment property. Although Zillow states that the average home price in Florida real estate 2018 is $216,000, which is 7% higher than 2017, the properties’ prices are still affordable especially when you compare it with other states such as California or New York.   

Following are the most affordable cities for buying an investment property, residential real estate in particular, in Florida. The following locations are according to Niche.com and based on home values, property taxes, property ownership rates and housing costs.

Palm Bay

This city is growing very fast and has a population of 106,573 with its suburban area feel. Its median home value is $110,000 compared to a national median home value of $184,700. On the other hand, its median rent is $949. 71% of its population owns a property while only 29% of them are renters due to the affordability of buying an investment property in this location.

Port St. Lucie

This city has a suburban area feel with a population of 175,652. It has a median home value of $149,400 and a median rent of $1,170 which makes it one of the most affordable locations for buying an investment property in Florida. 76% of its population owns a property while only 24% of them rent a property.

St. Petersburg

With its great schools and sites, St. Petersburg has a population of 253,585 and a median home value of $154,800. It also has a median rent of $959 as 58% of the population owns a property while 42% of them are renters.

Cape Coral

With its quiet location that has a low crime rate, Cape Coral has a population of 170,063. Moreover, it has a median home value of $173,400 and a median rent of $1,095. 68% of its population owns a property while 32% of them rent one.

However, knowing the most affordable locations for buying an investment property is not enough. You do have to have a detailed approach in regard to the process of buying an investment property.

How to Buy an Investment Property? Answer These Questions:

Do You Have Enough Knowledge About Real Estate Investments?

Knowledge is key to every investment especially when buying an investment property, and the real estate business is not an exception. In order to get best deals when buying an investment property, you have to know the sellers’ and buyers’ behavior in the US housing market, what is the best time to buy an investment property and also the best location that suits your goals and budget. This requires a professional understanding and analysis of the housing market, taxes rates and other elements related to buying an investment property.

Do you want to know what are the most important aspects when learning about real estate investing? Read: What Are the Most Important Aspects of Real Estate Education?“

Are You Aware of the Financing Options Related to Buying An Investment Property?

You are lucky enough to live in 2018 where financing options for investments are limitless. You no longer need to have all cash for buying an investment property when you can get a mortgage from your bank, get a fix and flip loan, real estate partnerships and many other options. As a real estate investor, you have to be familiar with the financing options out there and choose the one that best matches your goals and the property type you want to buy.

Are you still wondering how to finance your investment property? Read “Buying an Investment Property? Here’s How to Finance It.”

What Type of Property Do You Want to Buy?

Successful real estate investors always have a tentative plan regarding what type of investment property they want to buy. Having an image of the type of property you want to invest in helps you find the exact property that you are looking for and it facilitates the process of buying an investment property. The type of property that you are looking for should be based on the type of investment you want to start investing in. Buying a house for rental purposes requires a different approach compared to buying commercial investment properties or turnkey properties, for example.  

Do you want to know what are the best types of property for beginner investors? Read “What Are the Best Types of Property for New Real Estate Investors?“ 

Do You Know How to Conduct Real Estate Market Analysis?

Buying, selling or investing in real estate requires real estate market analysis in order to determine and estimate the value and cash on cash return for a certain investment property. Real estate market analysis helps you understand the fluctuation of the target housing market and the value of certain properties which helps you get the best investment deals that are available.

Are you interested in knowing how to perform a real estate market analysis? Read “Real Estate Market Analysis in 6 Simple Steps.”

Final Words

In general, all indicators suggest that the US housing market is a promising place for real estate investors and 2018 might be your year if you are planning to buy an investment property in a place like Florida.  
Click here to learn about how Mashvisor helps you search for investment properties to buy.