Buying property in Florida is a desired investment by many real estate investors in the field. This is mainly due to the fact that the Florida real estate market classifies as one of the best places to invest in real estate. As you can imagine, however, that is simply not enough to decide whether or not buying property in Florida is the right thing for you and your real estate investing business.
Naturally, many questions arise. What should you consider before buying property in Florida as a real estate investment? What are the benefits and pitfalls of buying property in Florida? What is the forecast for the Florida housing market? Where to buy a house in Florida? These questions are probably the main concerns that appear in your head when thinking about buying real estate in Florida. Do not worry! We will present you with all the information you need to know before you invest in Florida real estate properties.
#1 The Florida Housing Market
The Florida real estate market is one of the top investment markets at the moment. Even though prices of Florida investment properties have gone up and are expected to rise even higher, almost every real estate investor is interested in buying property in Florida. The increase in prices can also be used as an indication of the condition of the Florida housing market. As you can probably guess, the Florida real estate market is in the condition of a seller’s market currently. This means that the market favors the sellers as the demand exceeds the supply of properties in the region. Even though a big part of the state suffered huge damages after hurricane Irma, the state has almost completely recovered from this climatic event.
Buying real estate in Florida is a good investment decision for several factors. Let’s begin with the economic stability of the state. Additionally, buying property in Florida is great as the state offers great investment opportunities for each rental strategy and a high return on investment on Florida real estate properties. For instance, the state is a famous tourist destination. This is due to the weather, nature, and attractions available for travelers. Even though the tourist sector is already operating at a high level, it keeps on growing. As you can imagine, so do Airbnb rentals in Florida. Moreover, there are many job opportunities, which make many people move to the state long term. Therefore, there is an increasing demand for traditional rentals as well.
After exploring the Florida real estate market, it is time to check the upsides and pitfalls of buying property in Florida. If you are interested in learning more, you can check out “Is It a Good Time to Buy Property in Florida for Real Estate Investing?”
#2 The Upsides of Buying Property in Florida
When buying real estate in Florida, you’re bound to wonder what kind of benefits it will bring to you. Florida real estate properties certainly have some features to make you even more willing to finance a vacation home or a traditional rental property there. Here are some of the upsides of buying property in Florida:
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Relatively Affordable Rental Property Prices
For such a high in demand market, the prices of Florida investment properties are fairly reasonable. That is why the return on investment index in the state shows high results.
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Opportunities for Development
As previously mentioned, to buy investment property in Florida is almost always a great idea. This is due to the fact that the real estate investor can choose the investment strategy he/she wants and have a high chance of succeeding with it. For instance, if you want to invest in a vacation home, there is a great opportunity for that. If you prefer to go with the traditional Florida investment properties, that is great as well.
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When the Local Housing Market Is Growing, You Will Make a Lot of Money
This last one speaks for itself. If you buy investment property and own it while the market in Florida is developing, you have all the chances of becoming rich from real estate investing.
#3 Pitfalls of Buying Property in Florida
When buying property in Florida, it is also important to know some of the obstacles you might face in your way. Whether you have decided to buy investment property in the state in the form of a vacation home or a traditional rental, here are some of the downsides of buying property in Florida:
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Difficulty Getting a Loan
It is important to take into consideration that it might be a bit harder than usual to get a mortgage loan in Florida than in some other states. In case you do not have all the financial assets you need to purchase a property, take time in advance to deal with this step.
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The Location Is Essential
You need to be extremely careful when choosing the exact location of your next investment property. In Florida, that is the variable that will either boost your business or drag it down.
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When the Local Housing Market Is Down, You Lose a Lot of Money
If the market is in a bad state in Florida, real estate investors tend to lose financial assets faster than in other places in the US market, so be careful.
#4 Where to Buy a House in Florida
When wondering where to buy a house in Florida, you should definitely consider the rental strategy you want to adopt. This is due to the fact that each place is associated with a particular optimal rental strategy. Thus, in order to help you find the best places to invest in real estate and the most successful rental property, we will divide the data into two sections. These are namely the best places to invest in real estate in Florida for Airbnb rentals and traditional rentals.
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Airbnb Rentals
Lake Worth, Florida
Median Property Price: $82,900
Airbnb Rental Income: $1,563
Airbnb Cash on Cash Return: 10.6%
Airbnb Cap Rate: 10.6%
Airbnb Occupancy Rate: 51,61%
Briny Breezes, Florida
Median Property Price: $152,000
Airbnb Rental Income: $1,875
Airbnb Cash on Cash Return: 8.19%
Airbnb Cap Rate: 8.19%
Airbnb Occupancy Rate: 37.46%
Weeki Wachee, Florida
Median Property Price: $249,950
Airbnb Rental Income: $2,761
Airbnb Cash on Cash Return: 8.13%
Airbnb Cap Rate: 8.13%
Airbnb Occupancy Rate: 59.46%
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Traditional Rentals
Springfield, Florida
Median Property Price: $94,000
Traditional Rental Income: $1,113
Traditional Cash on Cash Return: 8.51%
Traditional Cap Rate: 8.51%
Tarpon Springs, Florida
Median Property Price: $320,000
Traditional Rental Income: $2,486
Traditional Cash on Cash Return: 5.87%
Traditional Cap Rate: 5.87%
Miami Gardens, Florida
Median Property Price: $232,864
Traditional Rental Income: $1,441
Traditional Cash on Cash Return: 2.99%
Traditional Cap Rate: 2.99%
If you want to learn about other top markets in Florida, make sure to read “Orlando and Tampa Are Key to Invest in Florida Real Estate.”
It is important to note that all the data has been acquired through Mashvisor’s investment property calculator. This is a great tool to help you not only when buying property in Florida, but everywhere in the United States. To learn more about this tool, please check out “Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier.”
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