Investing in Airbnb Gulf Breeze FL, just like most vacation rental markets, offers great potential as an additional income stream for investors. The question now is this: Is it really worth investing in?
Airbnb Gulf Breeze FL: Is It Worth Investing in?
Every year, Florida ranks as one of the top five most visited states in the US, coming close to top-seed California in most cases. After all, what’s not to like about the Sunshine State? The sub-tropical weather means it experiences a near-perfect climate all year round.
There are enough theme parks and natural sceneries for families to enjoy. The long stretches of white sandy beaches make for perfect getaways for people of all ages.
Some real estate investors who are keen on buying Airbnb income property in the Florida housing market are looking at the possibility of investing their hard-earned money in Airbnb Gulf Breeze FL. But the question is, “How profitable is it?” What will the return on investment look like for those who are willing to buy a property for Airbnb Gulf Breeze?
Instances like the above require investors to be more resourceful and diligent in gathering essential information about a particular market. When it comes to real estate investing, one can never be too careful. Fortunately, websites like Mashvisor help investors perform their due diligence more efficiently in a fraction of the time.
Mashvisor: The Right Real Estate Investment Tool for Investors
Mashvisor is an online real estate marketplace that specializes in helping investors locate potential investment properties and perform traditional and Airbnb data analysis to find out how profitable a particular property is.
Investors who are looking for income-generating properties in the Florida real estate market will find Mashvisor extremely useful as it allows them to investigate not just larger cities and towns but also smaller towns and neighborhoods.
The platform’s real estate heat map, in particular, lets subscribers locate the right property in the most profitable neighborhoods. It allows users to search for properties in multiple markets simultaneously, making the research process highly efficient and swifter.
Mashvisor also offers a massive database that is updated regularly. You can look up almost any market in the US and be presented with the most accurate and relevant traditional and Airbnb data you will need for your research and analysis.
To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
Airbnb Gulf Breeze FL Data: What Investors Should Know
If you’re an investor and you’re considering investing in Airbnb Gulf Breeze, you need to know what the market conditions are so you can make wiser decisions. Using Mashvisor’s data, we will walk you through some of the most vital Airbnb Gulf Breeze FL data to determine whether the short term rental strategy is right for you.
Median Property Price
- December 2021: $685,602
- February 2022: $869,873
One of the main concerns of buying a property is affordability. Whether you intend to purchase a house to use as your primary residence or to generate positive cash flow, the price will always be one of a buyer’s main considerations.
Typically, most real estate professionals prefer to use median property prices instead of averages. The former is proven to be a more accurate representation of a real estate market.
Mashvisor’s December 2021 data shows that the median property price for houses listed that month is $685,602. After a little over two months, the price is up by almost $200,000, bringing the new median price point for February 2022 to $869,873. Considering such a huge leap, now may be the best time for serious investors to invest in Airbnb Gulf Breeze FL.
Average Price per Square Foot
- December 2021: $335
- February 2022: $366
Even the slightest dollar rise in the price per square foot can mean a huge difference in a property’s price when multiplied by the hundreds or thousands. It is clearly evident with the spike in median property prices between December 2021 and February 2022. The $31 increase in price per square foot over a period of two months is enough to bring significant changes in property prices.
And since real estate prices are more likely to go up than down with time, investors should anticipate the upward trend to continue throughout the year.
Airbnb Listings
- December 2021: 151
- February 2022: 157
The number of listings for Airbnb Gulf Breeze FL slightly went up by six listings. It is not as impressive as other locations, but it still indicates that the demand for vacation rental properties is growing. If anything, with the easing of travel restrictions and the reopening of the domestic economy, more people are expected to go back to interstate traveling.
As the local tourism industry starts picking up, the number of visitors coming to Gulf Breeze will inevitably grow.
Airbnb Monthly Rental Income
- December 2021: $3,339
- February 2022: $3,265
Airbnb rental income is one of the things investors use to see how much money they can make from their investment. Part of doing research is finding out how much other Airbnb owners in the same neighborhood make. Performing a comparative analysis gives investors an idea of the potential monthly income they can make.
A typical Gulf Breeze Airbnb rental earned about $3,339 in December 2021. However, between then and February this year, the figure went down to $3,256. It could be because December is the start of Florida’s peak season.
Generally, Airbnb rates do go high during peak season in Florida as many people who want to escape the cold of winter usually make their way down to the Sunshine State. Other factors affect the decrease in monthly Airbnb income, but they can be different from host to host.
Airbnb Daily Rental Rate
- December 2021: $226
- February 2022: $225
The decrease in the average monthly rental rate may be due to the daily rates going down. February 2022 saw the average Airbnb nightly rate drop by a dollar. However, it doesn’t mean that the market is weakening. Slight price declines are normal, especially during the off-season. Airbnb daily rates tend to fluctuate depending on the time of year.
Airbnb Occupancy Rate
- December 2021: 50.84%
- February 2022: 51%
Owning an Airbnb is a lot of hard work. Most individuals get the wrong impression that it is a completely passive income source. Making money in real estate, especially if you intend to rent out your property, requires a more hands-on approach. You can’t just leave everything to a property management company, no matter how helpful they are.
Airbnb hosts know how much involvement it takes to keep their properties occupied for more than half of the time. To ensure they get a good return on their investment, they must bring their A-game and get their hands dirty. Most successful Airbnb owners devote a good amount of their time and attention to running their Airbnb business.
That being said, even the slightest improvement in occupancy rate can help increase their investment return. The small 0.16% difference between December 2021 and February 2022 already counts as a gain for investors.
Investors in Airbnb Gulf Breeze FL can expect to see an improvement in their investment return even with the slightest increase in occupancy rate.
Airbnb Cash on Cash Return
- December 2021: 2.73%
- February 2022: 1.98%
Perhaps the most important metric real estate investors should look at when it comes to rental properties is cash on cash return. The CoC metric takes a property’s annual net operating income (NOI) and divides it by the total cash investment upon the property’s purchase.
While cap rate is also used to determine a property’s profitability, the advantage of using cash on cash return is it takes into account the type of financing used to acquire the property. Not all investors have hundreds of thousands of dollars in their bank accounts. Some people need to take out loans or other financing options to purchase a property.
Real estate professionals agree that good cash on cash return falls somewhere between 8% and 12%. Still, they also acknowledge that the chances of getting anywhere near those numbers are few and far between. As long as the market’s cash on cash return does not go below 1.0%, you’ll be fine.
Considering the near 1% drop from December 2021 to February 2022, Gulf Breeze’s Airbnb cash on cash return rate is still nearly 2.0%, which is still okay. As we go further into the year, it is expected to bounce back.
Walk Score
- December 2021: 51
- February 2022: 51
While walk score is really not an essential metric to determine the return on investment, it also helps investors get an idea of how tourist-friendly a particular place can be. According to Redfin, the higher the walk score, the more walkable the area, meaning the dependence on cars to get around and do things is lesser.
A Walk Score of 50 to 69 means that the area is somewhat walkable. Some important facilities and amenities can be easily reached on foot, while others will require a vehicle to get to.
You’ve probably noticed that two months already bring a huge difference in market performance. Several factors affect the performance of short-term rentals, including Airbnb demand. It isn’t just true for Airbnb Gulf Breeze FL, but it is also the same with almost any other location. Factors like seasonality, short-term rental legislation, tourism, and a handful of others all affect how the short-term rental market performs.
But if anything, real estate investing in Gulf Breeze in 2022 might be a wise thing to do considering how rapid growth in the properties’ median property price. Consider, as well, how interest rates for 30-year fixed-rate mortgages – although at historically low levels now – are also expected to go up incrementally throughout this year.
It is why doing your homework and using an Airbnb calculator are important. They are part of doing your due diligence. On top of that, we also recommend connecting with a local real estate agent with extensive experience and knowledge of the market. They will be able to respond to any questions you may have about the property you’re considering.
The Different Sights and Sounds of Gulf Breeze FL
Now that we’ve established how Airbnb Gulf Breeze FL has grown over the past couple of months, what are the reasons for tourists to come and visit Gulf Breeze? Knowing the different things a location has to offer tourists and visitors can give real estate investors the added motivation to invest in Airbnb properties in the Gulf Breeze real estate market.
1. Beaches Galore
Gulf Breeze wouldn’t be called “Gulf Breeze” if it didn’t have any beaches in it. Folks are guaranteed to enjoy Opal Beach and Pensacola Gulf Pier. Beach lovers will fall in love with both locations for different reasons.
Opal Beach offers lots of picnic shelters and outdoor showers. Additionally, folks can also enjoy some fishing and wildlife viewing.
Pensacola Gulf Pier, on the other hand, allows tourists to spend the day fishing, shopping, dining, and seeing different sea creatures like dolphins, rays, manatees, crabs, and even sharks. On top of that, Pensacola has some of the best sunsets you will ever see.
2. Hiking and Biking on Nature Trails
Gulf Breeze also offers a few great spots for hiking and biking. One particular spot is the Naval Live Oaks Preserve, created by John Quincy Adams in 1828. It was initially intended to be a preserved coastal stand of live oaks to make boats for military use.
Nature lovers can hike or go on bike rides on the Brackenridge Nature Trail or the trail named after President Andrew Jackson. The trails are good for walkers of all skill levels, making them ideal for all family members.
3. Gulf Islands National Seashore
Birdwatching is an interesting pastime for a lot of people. One of the best places in the US to spend time bird watching is the Gulf Islands National Seashore, where more than 280 bird species have been identified since its creation.
4. Water Sports
Since the place is pretty much surrounded by water. Gulf Breeze offers visitors and tourists fun water sports and activities for different skill levels. People can go wave running, parasailing, snorkeling, or just go on fun boat rides. One particular boat tour to experience is the Buccaneer Pirate Cruise, a real favorite among kids of all ages.
5. Family Fun
Gulf Breeze is one of the places in Florida where families can hang out and enjoy. Its different family-oriented activities – such as going to the beach, hiking on trails, feeding animals at the Gulf Breeze Zoo, and other touristy activities – allow families to build memories together.
6. Parks and Museums
Gulf Breeze is also home to several parks and museums. One of the more popular parks in the city is Fort Pickens National Park, which is a favorite among campers.
The city also boasts a colorful history that is showcased in the Destin History and Fishing Museum, as well as the Naval Aviation Museum.
7. Arts, Entertainment, and Leisure
What would a visit to Gulf Breeze be like without experiencing the local culture? The city offers a lot in terms of arts and entertainment. From visiting museums and parks to enjoying a full day of dining and shopping, tourists are likely to enjoy seeing and experiencing the different sights and sounds of the city.
The Verdict: Is Gulf Breeze FL a Good Place for Airbnb Investment?
If you’re unsure whether or not to invest in Airbnb Gulf Breeze FL, knowing what the place has to offer is a good starting point. No one’s ever said that expanding one’s real estate portfolio will be easy. Understandably, investors have different goals, timelines, and financial resources. It will all depend on one’s investment goals.
If the information and data all meet your expectations and match your criteria, there’s no sense in waiting any longer. As long as you did your homework and you’re fully satisfied with all the information you have, go for it.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.