If you’re looking to invest in real estate in 2022, you might have considered Airbnb Winter Haven FL. However, does actual data reflect that it will be lucrative?
There are many good reasons why any real estate investor would consider investing in the Florida housing market. For starters, home prices have been rising over the past few years, notwithstanding the pandemic. Real estate experts have predicted that the upward trend will continue in 2022.
Though it presents an excellent opportunity for Airbnb investors, you should still be careful when buying an investment property. You want to buy an Airbnb income property that will make financial sense and offer you a positive cash flow.
Today, we look at the reasons why you should consider investing in Airbnb Winter Haven FL. But first, let’s look at Florida housing market trends that justify investing in Winter Haven.
Florida Real Estate Market Trends 2022
Here are some Florida housing market trends that make Airbnb Winter Haven FL investment a great opportunity:
Higher Rental Income
There are two rental strategies that you can follow when you buy an investment property. They are:
- Traditional Rental Strategy – A conventional real estate rental strategy where a landlord finds one tenant who leases the property long-term, say one year or more. It is the most popular rental strategy since it provides property owners with a consistent income.
- Short-term rental strategy – Also known as vacation rental strategy. As the name suggests, the tenant becomes the host and lists their property on short-term rental platforms, such as Airbnb, and finds guests who rent the property for a minimum of one night.
The short-term rental strategy is becoming even more popular nowadays since it gives landlords an opportunity to earn a higher rental income than the traditional rental strategy. It is because you can set a favorable nightly rate that will help cover the monthly expenses and leave you with a handsome profit. For example, during peak months, you can raise the nightly rate as Airbnb demand increases, allowing you to generate even more income.
In states like Florida, where tourism activities are popular, Airbnb rental business is very profitable.
Tax Deductions
The state of Florida provides various tax deductions for property owners. As a short-term rental owner, you can deduct costs associated with the maintenance and upkeep of your rental property. The tax-deductible charges include:
- Cleaning costs
- Occupancy taxes
- Consumables
- Utilities
- Hosting fees
These are just some of the deductible costs, as there are many others.
Private Resort Location
When it comes to vacations and holidays, Florida is arguably one of the hottest housing markets in the US. Imagine owning a second home that you can use as your vacation property in Florida?
Purchasing a vacation property in Florida gives you a place to host family and friends during the holidays. Other than saving you money, you also get to enjoy the luxury that comes with owning a secondary home in Winter Haven FL.
Related: The 10 Best Rental Markets in Florida
Why Should You Invest in Airbnb Winter Haven FL?
Having an Airbnb property in Winter Haven FL can be a profitable venture. Firstly, the city is quite a prime location. As real estate trends have demonstrated over the years, properties in such areas don’t take too long before they’re snatched up.
Travelers and vacation-goers flock to Winter Haven FL, especially during the summer season, to enjoy the sunshine and amenities that the city offers.
While this may seem like a great opportunity, you should first look at data to support your business decision and activities and attractions that make it a suitable investment.
Airbnb Winter Haven FL Performance in 2021
When analyzing an investment opportunity in a certain area, you have to look at the performance of existing investments of the same kind. In short, the performance of other Airbnb properties in the same neighborhood is proof of the investment’s potential.
Using the Mashvisor Property Analysis Report, we’ve compiled the following vital data for the Winter Haven FL housing market. Pay closer attention to the data associated with short-term rentals.
- Median Property Sale Price: $407,784
- Average Price per Square Foot: $191
- Airbnb Rental Income: $2,997
- Airbnb Cash on Cash Return: 5.37%
- Airbnb Daily Rate: $139
- Airbnb Occupancy Rate: 62.25%
- Traditional Rental Income: $1,400
- Traditional Cash on Cash Return: 2.51%
- Walk Score: 58
The above data affirms an investor’s decision to invest in Airbnb Winter Haven FL. As you can see, property in this city will make you a higher rental income as a short-term rental, compared to a traditional rental.
Keep in mind that the cost of living is considered average in Winter Haven FL. With a monthly Airbnb rental income of $2,997, you’ll have enough to settle your monthly bills, including mortgage, and still realize a substantial profit.
The Airbnb occupancy rate is also above average, meaning that if you pay attention to property management, you stand a chance to enjoy consistent bookings throughout the year.
Winter Haven FL represents an excellent investment opportunity for both traditional and Airbnb rentals.
2021 Winter Haven FL Housing Market Trends
According to Redfin, in December 2021, properties in Winter Haven FL were selling at an average price of $289,000. This was an increase of 29.6% the previous year. The median listing price power square foot was $163.
Properties in Winter Haven FL spent an average of 13 days on the market, compared to 31 days in the previous year. Some 148 homes were sold in the Winter Haven real estate market in 2021, down from 191 properties in the previous year.
Single-family properties sold for an average price of $290,420 in 2021, representing an increase from $240,990 in 2020. Condos and townhouses, on the other hand, sold for a median price of $225,000, up from $89,497 in the previous year.
The sale-to-list ratio in Winter Haven FL was 100%, meaning that properties sold for approximately the asking price. This is a good indicator that the Winter Haven housing market is balanced since the demand matches the supply.
In January 2022, there were 77 properties in Winter Haven FL for sale on the Mashvisor platform. The properties’ prices range from $119,900 to $2,000,000. As such, you can invest in this housing market even if you don’t have a lot of capital.
Related: The Best Way to Find an Income Property For Sale
Why Are Tourists Attracted to Winter Haven FL?
Airbnbs do well in major tourism hubs.
Winter Haven FL is home to beautiful lakes, a majestic tower, an impressive collection of vintage aircraft, and plenty of other places to explore and enjoy.
To start with, Busch Gardens Tampa is one of the largest theme parks in the US and attracts tourists from all over the country all year round. This is a place for you and your family to spend a lot of time during your visit to Winter Haven FL. Also, take your family to Lake Kissimmee State Park. The 6,000-acre park comprises various natural environments that are home to diverse species of animals and plants. Make sure to find time to visit the park and see dozens of endangered species.
Art lovers can spend quality time at The Polk Museum of Art. The museum features works from legendary artists, such as Pablo Picasso and Andy Warhol. You’ll see various permanent exhibits and community-centered programs. It focuses on promoting and preserving not only the arts but also culture, science, and history as well.
Florida is a haven for golfers. The state is home to more golf courses per capita than anywhere else across the globe. If you want to unwind by playing golf, the Willowbrook Golf Course will give you an experience like no other. It opened its doors in 1967, with its 18 holes playing 6,500 yards. It’s a reasonably-priced and scenic golf course for golfers who want value for their money. If you go here during the peak season, make sure you book your tee time in advance.
Sitting on over more than 150 acres of land, LEGOLAND Florida is one of the city’s major attractions. It’s found on the scenic shores of Lake Virginia. The family-friendly facility is dedicated to inspiring creativity in kids and encouraging them to express themselves. Although most of the activities here were created with preteens in mind, older children, as well as adults, end up having a blast.
Another facility created to inspire young minds to explore the world of science, technology, and industry is the Museum of Science and Industry. The museum houses hundreds of interactive exhibits meant to engage and educate both young and adult minds. Its displays and activities touch on 3D printing, robotics, space and planets, animals, and the natural world. It also includes an IMAX theater that offers shows every hour.
The Fantasy of Flight is a top destination for aviation enthusiasts. The facility is home to an impressive collection of restored civilian and military aircraft. Much of the collection involves the formative years of flight, but there are also various historically significant items that deal with contemporary aviation, too. Interestingly, their collection of airworthy aircraft is larger than small countries’ air forces.
Related: Airbnb Hudson FL: Should You Invest in 2022?
How to Invest in Airbnb Winter Haven FL
Follow the steps below on how to start investing in Airbnb Winter Haven FL:
Select a Profitable Property Type
Your location determines the type of property that will be most suitable for Airbnb investment. Also, you should establish the type of groups or demographic you want to attract as your guests.
For example, you might want to purchase an Airbnb in a city or a populated area if your target audience is single travelers or couples. On the other hand, suburban settings may be more suitable for families or large gatherings.
You should also determine the number of bedrooms you want on your property. One-bedroom units and studio apartments will tend to be more popular with couples and solo travelers. Traveling families or groups will want to stay in an Airbnb with more rooms, such as single-family homes.
We understand that going through this process manually can be taxing. This is why we recommend you use the Mashvisor Neighborhood Analytics tool. This tool will help you research what property type is best for Airbnb Winter Haven FL. It’s an AI tool that collects accurate data from the Airbnb site and other vacation rental platforms to help you understand the most suitable number of bedrooms and property types in a neighborhood.
Set a Budget
Investing in real estate is a numbers game. Like any other investment, it’s important to set a budget and stick to it when undertaking a short-term rental investment. Your budget can determine the return of investment and whether you get a positive cash flow.
Here are some important factors to have in mind when setting a budget:
- Selling price
- Closing costs
- Repairs and maintenance
- Furnishing costs
- Property registration and licenses
Also, always have extra money for miscellaneous costs. Some unforeseen matters may arise and you don’t want to get caught unawares.
Search for a Property
The next process is finding suitable Airbnb income property investment in Winter Haven FL. At this stage, we recommend you use Mashvisor Property Finder. This tool helps you search through properties for sale in Winter Haven FL and find the most profitable one for investment.
The tool allows you to use the following filters to narrow down your search:
- Budget
- Property type
- Rental strategy
- Number of bedrooms
- Location
The Property Finder tool also has a heatmap that shows you which neighborhoods in the city are profitable based on rental income and return on investment for both rental strategies.
Key Takeaways
Real estate investing is one of the best ways to build a diversified real estate portfolio. Airbnb investment is becoming popular due to its potential to generate a good return on investment and positive cash flow. Many investors are now turning to Airbnb properties due to the massive potential of making money in real estate.
We’ve seen that Airbnb Winter Haven FL will be a good investment in 2022. There’s a lot of potential in this city. However, you need to utilize Mashvisor tools, such as Airbnb Calculator, to avoid making serious business mistakes.
The tools serve both new and experienced real estate investors. They are also easy to use, so you don’t have to spend a lot of time learning how to use them. Sign up for a 7-day free trial of Mashvisor followed by a 15% discount on your quarterly or annual subscription!