Traditional Rentals Is 2018 the Right Time to Invest in Multi-Family Homes in Florida? by Hamza Abdul-Samad August 19, 2018August 16, 2018 by Hamza Abdul-Samad August 19, 2018August 16, 2018 Multi-family homes are one of the best types of rental properties for making money in real estate. This type of property is very profitable since it generates high rental income and forced appreciation as a long-term rental. Multi-family homes are suitable real estate investments nationwide, but how do they fit in the Florida real estate market in 2018? Related: Understanding Multi-Family Investment Property Returns and Benefits Multi-family Homes in Florida Real Estate The Florida real estate market is undoubtedly among the top housing markets in the country. Despite increasing investment property prices, The Sunshine State is a premier hub for Airbnb rentals and traditional rentals. Its Airbnb rentals provide high occupancy rates and rental income thanks to its tourist destinations and beaches, and its long-term rentals generate high ROI due to its strong economy. Related: The 7 Best Places to Buy a Vacation Home in Florida When it comes to traditional long-term rentals specifically, Florida remains a superb rental market. Both single-family homes and multi-family homes provide a high return on investment and rental income. According to Mashvisor’s real estate market analysis, the best cities for multi-family homes in Florida are Hollywood, Orlando, Miami, St. Petersburg, and Stuart. The city-level and neighborhood-level data mentioned below are provided by Mashvisor’s investment property calculator. To learn more about our product, which includes a real estate market analysis and investment property calculator, click here! Hollywood Median Property Price: $332,151 Rental Income: $1,974 Cash on Cash Return / Cap Rate: 3.15% Hollywood, FL may not carry the world-class status of Hollywood, CA, but it certainly does provide terrific multi-family real estate investment opportunities. Multi-family properties in this city have the highest return on investment in the Florida real estate market. The multi-family homes in Hollywood are also very inexpensive. The top four neighborhoods with multi-family homes for sale in Hollywood are Mapleridge, Park Side, Highland Garden, and Emerald Hills. 1.) Mapleridge Median Property Price: $160,450 Rental Income: $1,450 Cash on Cash Return / Cap Rate: 4.53% 2.) Park Side Median Property Price: $239,400 Rental Income: $1,575 Cash on Cash Return / Cap Rate: 4.54% 3.) Highland Garden Median Property Price: $226,950 Rental Income: $1,525 Cash on Cash Return / Cap Rate: 4.07% 4.) Emerald Hills Median Property Price: $202,839 Rental Income: $1,650 Cash on Cash Return / Cap Rate: 3.82% Orlando Median Property Price: $291,110 Rental Income: $1,438 Cash on Cash Return / Cap Rate: 2.28% Orlando is a renowned real estate investment giant for all forms of short-term rentals and long-term rentals, so there’s no surprise it’s on this list. As you would expect from The City Beautiful, multi-family homes are among the best real estate investments you can find. Orlando’s multi-family homes have the lowest median property price on this list. The best neighborhoods in ORL for multi-family properties are Signal Hill, Metro West, Ventura, and Rosemont North. 1.) Signal Hill Median Property Price: $116,750 Rental Income: $1,066 Cash on Cash Return / Cap Rate: 3.6% 2.) Metro West Median Property Price: $173,685 Rental Income: $1,356 Cash on Cash Return / Cap Rate: 3.34% 3.) Ventura Median Property Price: $146,600 Rental Income: $1,183 Cash on Cash Return / Cap Rate: 3.34% 4.) Rosemont North Median Property Price: $146,225 Rental Income: $1,140 Cash on Cash Return / Cap Rate: 3.25% Miami Median Property Price: $454,720 Rental Income: $1,873 Cash on Cash Return / Cap Rate: 1.71% Like the aforementioned Orlando, Miami is a well-known destination for real estate investors. While Airbnb rentals are often the dominant form of real estate investments, multi-family properties are also very profitable. The best places with multi-family homes for sale in Miami are Liberty City, Little Haiti, Shenandoah, and Allapattah. 1.) Liberty City Median Property Price: $274,730 Rental Income: $1,658 Cash on Cash Return / Cap Rate: 2.97% 2.) Little Haiti Median Property Price: $310,791 Rental Income: $1,815 Cash on Cash Return / Cap Rate: 2.58% 3.) Shenandoah Median Property Price: $536,980 Rental Income: $2,205 Cash on Cash Return / Cap Rate: 1.72% 4.) Allapattah Median Property Price: $323,818 Rental Income: $1,712 Cash on Cash Return / Cap Rate: 2.07% St. Petersburg Median Property Price: $294,107 Rental Income: $1,432 Cash on Cash Return / Cap Rate: 1.81% Unlike the previous two cities, St. Petersburg is a city that thrives on traditional long-term rentals. This is strongly due in part to an up-and-coming economy. While Florida real estate as a whole seems to be moving towards a seller’s market, St. Petersburg’s prices appear to be accelerating faster than the usual rate. Related: Is It a Buyer’s or Seller’s Market? If you’re a real estate investor interested in the multi-family homes in St. Pete, be sure to purchase before the spike in prices! The best neighborhoods to focus on are Cromwell Heights, Meadowlawn, Disston Heights, and Woodlawn Oaks. 1.) Cromwell Heights Median Property Price: $137,500 Rental Income: $1,200 Cash on Cash Return / Cap Rate: 3.9% 2.) Meadowlawn Median Property Price: $214,450 Rental Income: $1,438 Cash on Cash Return / Cap Rate: 2.69% 3.) Disston Heights Median Property Price: $172,369 Rental Income: $1,100 Cash on Cash Return / Cap Rate: 2.05% 4.) Woodlawn Oaks Median Property Price: $181,267 Rental Income: $1,073 Cash on Cash Return / Cap Rate: 2.04% Stuart Median Property Price: $475,715 Rental Income: $1,405 Cash on Cash Return / Cap Rate: 1.67% On the surface, Stuart may seem to be just another small town in Florida. But in reality, it is one of the best places in the state to find multi-family homes for sale. The best neighborhoods in Stuart are Eldorado Heights, Sarita Heights, West Riverside, and St. Lucie Estates. 1.) Eldorado Heights Median Property Price: $134,900 Rental Income: $1,295 Cash on Cash Return / Cap Rate: 4.95% 2.) Sarita Heights Median Property Price: $273,419 Rental Income: $2,021 Cash on Cash Return / Cap Rate: 3.14% 3.) West Riverside Median Property Price: $319,888 Rental Income: $2,200 Cash on Cash Return / Cap Rate: 2.97% 4.) Lucie Estates Median Property Price: $239,900 Rental Income: $1,395 Cash on Cash Return / Cap Rate: 2.43% Multi-family homes are an excellent source of rental income and a great expansion for any real estate investment portfolio. For more tips on real estate investing, such as how to pick a rental strategy, how to become among the most successful real estate investors, and answers to question such as what is a multi-family home, visit the Mashvisor blog. To start your free 14-day trial with Mashvisor, click here! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Hollywood FLMiami FLOrlando FLSt. Petersburg FLStuart FL 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post Should I Sell or Rent My House? Next Post Burdened by Student Debt? Consider Investing in Real Estate Related Posts Tampa Real Estate is a Hot Market in 2018! Here’s Why How to Find Investment Property in the Los Angeles Real Estate Market 2018 Las Vegas Real Estate Market 2018: Is Now a Good Time to Invest? Houston Real Estate Market 2018 – Yes or No? Austin Real Estate Market 2018: Is Now a Good Time to Invest? Top Real Estate Markets with High Cap Rate Properties for Sale Traditional and Airbnb Investments in the Colorado Real Estate Market Should You Invest in Traditional Rentals or Airbnb Rentals in the California Real Estate Market in 2018? Is This the Best Time to Buy Property in Florida for Real Estate Investing? 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