The best place to buy multi family properties in 2018 is hands down the Florida real estate market.
By now, you may already know Florida is one of the best places to invest in real estate for single family homes. Even investing in Airbnb rental properties is a safe bet in the Florida real estate market. So, it may come as no surprise that investing in multi family real estate in this location is an A+ real estate investment strategy as well.
Let’s take a look at the general trends in the Florida real estate market 2018 and what makes Florida the best place to buy multi family properties. Once you have the low down on that, we can show you just where to invest in real estate here for a high return on investment with multi family homes for sale.
But First…
Why Invest in Multi Family Homes for Sale?
If the Florida real estate market 2018 has some of the best cities to invest in rental properties this year for single family homes and Airbnb investments, why go for multi family homes for sale? Well, a real estate investor stands to gain a lot from this type of real estate investment:
- You have the option to be an owner-occupier and save money on buying a primary residential property
- More units=more rental income
- More units=lower chance for 100% vacancy= low risk investment
- You have more control over forced appreciation thanks to common areas in multi family homes
- Buying multi family homes for investment can mean easier financing simply because some lenders see this as a low risk investment (see our third point above)
- Professional property management becomes financially viable opening the route to passive income
Convinced? Start looking for multi family homes for sale right now. Click here to find investment properties with the highest cash on cash return in any market.
Of course, to get all of these benefits, a real estate investor must choose the best place to buy multi family properties– let’s get back to the Florida real estate market 2018.
Related: Learn How to Invest in Multi Family Homes for Sale
Florida Real Estate Market Trends of 2018
Rising Investment Property Prices in Florida
A major sign of a hot real estate market is real estate appreciation of property values. In 2017, the Florida real estate market saw a 9.6% rise in investment property value, according to Zillow. On top of that, by 2019, a 6.1% growth in real estate appreciation is expected in this housing market. So while prices for multi family investment properties may be high, they are only going up. In other words, a Florida real estate investor should act now and bank on the rise in real estate prices rather than end up spending more on a future investment property.
Increase in Florida Investment Property Listings
Usually with rising prices of investment properties comes a housing inventory shortage. This happens to be the case in certain locations in the state. Still, investment property listings have gone up in the whole of Florida as of June 2018 by 4.8%. This is actually a 3.6% increase in the housing inventory from this time last year, according to a report from the Florida Realtors Association. This kind of increase is hard to find across the current housing market; hopefully, such trends will continue in real estate development in the Florida housing market 2018.
At the same time, listings for foreclosures, REOs, and short sales are down in this state. While these investment properties can make for some great real estate investing opportunities, the lack of them is a major sign of a healthy real estate market.
DOM Trends Beat the National Averages
With high prices and less investment property listings, you guessed it, there is low days on market. Currently, the days on market is 84. While that number is dropping from an already low one, it is still higher than the national average of 54.
All of these real estate market trends add up to one thing: high demand for investment property. You might be backing away right now from the Florida real estate market for fear of the competition. In reality, what you’ll find is most of the competition is surrounding single family homes and vacation home rentals. That’s not because multi family homes for sale don’t represent a great real estate investment in this market. It’s more of a trend in the current housing market because the average real estate investor fears this niche for its expenses and difficult entry point.
Leaning towards vacation home rentals? Read: The 7 Best Places to Buy a Vacation Home in Florida
Florida’s Economy Leads the Nation in Job Growth
If you’re looking to become the owner of a Florida investment property, whatever type of real estate it may be, you need to be informed on the economic trends. Because Florida is the best place to buy multi family properties, naturally the state has a very strong economy. According to a report from the Florida Chamber Foundation, Florida is actually leading the nation in job growth. With 195,000 jobs created in 2017 and an expected 180,000 to be created in 2018, occupancy rates for rental property will definitely be going up this year and beyond. It’s important to note that the unemployment rate is also below the national average.
Not only are things looking positive in the Florida housing market currently, but the same report shows there is a low probability for a recession. This is thanks to the fact that, once again, Florida beats out the nation: its economy is stronger than the US economy and growing much faster.
High Population Growth in Florida State
The move to Florida is tangible. Thanks to the new tax reforms, Florida is getting a boost in population from high tax states like New York and California. Not that this state was in dire need of a population boost- it’s the third most populous state in the US. With about 1,000 new residents arriving daily, Florida has become one of the fastest growing states as well.
What does this all mean for the best place to buy multi family properties? Higher rental demand and occupancy rates which means much higher rental income.
What more could an investor want in a real estate market in 2018? Click here to find and analyze investment properties in Florida.
What Makes Florida the Best Place to Buy Multi Family Properties in 2018?
Of course, all the above trends contribute to Florida’s title as the best place to buy multi family properties in 2018. But let’s look at the specifics.
The reality is that homebuyers are having trouble entering the real estate market when it comes to buying a single family home. With the increase in population and consistent economic and job growth, the demand for rental property flourishes. And, as is common in busy job centers, the buzzing demand is all on apartment rentals- multi family homes in the Florida real estate market.
That’s not all. There has been an increased interest from big corporate investors in multi family real estate investments in Florida. For example, a $14 million investment into the Cocoa Beach Resort for condo complexes (and other amenities in the region) as well as real estate development of over 30 new apartment complexes in South Florida alone all point to one thing: multi family homes for sale are hot in the market. If big-time real estate investors and developers are willing to invest millions in the multi family real estate investments in Florida, there must be something to gain, right?
The Best Places to Buy Multi Family Properties in the State of Florida
Ready to invest in Florida real estate? Then you need to know where you can get great returns with multi family real estate investing. Thanks to real estate analytics from Mashvisor, we can tell you where the best places to invest in real estate in Florida are, down to the exact neighborhoods.
Hollywood, FL
Park Side
Median Property Price: $239,400
Traditional Rental Income: $1,575
Traditional Cap Rate: 4.54%
Traditional Cash on Cash Return: 4.54%
Mapleridge
Median Property Price: $160,450
Traditional Rental Income: $1,450
Traditional Cap Rate: 4.53%
Traditional Cash on Cash Return: 4.53%
Highland Garden
Median Property Price: $226,950
Traditional Rental Income: $1,525
Traditional Cap Rate: 4.07%
Traditional Cash on Cash Return: 4.07%
Emerald Hills
Median Property Price: $202,839
Traditional Rental Income: $1,650
Traditional Cap Rate: 3.82%
Traditional Cash on Cash Return: 3.82%
Orlando, FL
Signal Hill
Median Property Price: $116,750
Traditional Rental Income: $1,066
Traditional Cap Rate: 3.6%
Traditional Cash on Cash Return: 3.6%
Metro West
Median Property Price: $173,685
Traditional Rental Income: $1,356
Traditional Cap Rate: 3.34%
Traditional Cash on Cash Return: 3.34%
Ventura
Median Property Price: $146,600
Traditional Rental Income: $1,183
Traditional Cap Rate: 3.34%
Traditional Cash on Cash Return: 3.34%
Rosemont North
Median Property Price: $146,225
Traditional Rental Income: $1,140
Traditional Cap Rate: 3.25%
Traditional Cash on Cash Return: 3.25%
Stuart, FL
Eldorado Heights
Median Property Price: $134,900
Traditional Rental Income: $1,295
Traditional Cap Rate: 4.95%
Traditional Cash on Cash Return: 4.95%
Sarita Heights
Median Property Price: $273,419
Traditional Rental Income: $2,021
Traditional Cap Rate: 3.14%
Traditional Cash on Cash Return: 3.14%
St. Petersburg, FL
Cromwell Heights
Median Property Price: $137,500
Traditional Rental Income: $1,200
Traditional Cap Rate: 3.9%
Traditional Cash on Cash Return: 3.9%
Meadowlawn
Median Property Price: $214,450
Traditional Rental Income: $1,438
Traditional Cap Rate: 2.69%
Traditional Cash on Cash Return: 2.69%
Miami, FL
Liberty City
Median Property Price: $274,730
Traditional Rental Income: $1,658
Traditional Cap Rate: 2.97%
Traditional Cash on Cash Return: 2.97%
Learn more about Miami real estate: Miami Real Estate Market 2018: Why and Where to Invest
Little Haiti
Median Property Price: $310,791
Traditional Rental Income: $1,815
Traditional Cap Rate: 2.58%
Traditional Cash on Cash Return: 2.58%
To start looking for and analyzing the best investment properties in one of these Florida neighborhoods, click here.
All of the data you see here is provided by Mashvisor’s real estate investment calculator. Want to be able to find the best multi family investment properties? Then start your 14-day free trial with Mashvisor right now. Click here to get started.
The best place to buy multi family properties this year? I think we’ve made the case that Florida has earned this title. So stop looking for the best place and start investing today with Mashvisor.