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!
