All real estate investors want to be making money in real estate. That is why every house investor aims to invest in property that generates positive cash flow. In order to find such an investment, investors seek the best places to invest in property in the United States. One of these places is considered to be the state of Florida. Do you want to buy house in Florida at the beginning of 2018? Then you must be wondering if the Florida real estate market is a good place to invest in property right now. We have the answer. So, keep on reading if you want to find out whether or not to buy house in Florida and if it will be the right path towards making money in real estate or not. If you want to read more on the subject, make sure to read “Is It a Good Time to Buy Property in Florida for Real Estate Investing?”
#1 The Florida Real Estate Market in Early 2018
The Florida real estate market remains one of the most attractive ones in the United States. Real estate investors find that to buy house in Florida is a great investment decision, despite the climatic changes and increasing prices. Yes, the prices of Florida investment properties are still increasing and do not show any sign of going down anytime soon. This, by itself, speaks that the market in the state is currently a seller’s market. A seller’s market implies that as the demand for properties is higher than the supply, the prices of Florida investment properties go up. Thus, the market favors the sellers.
Nevertheless, that does not stop house investors from wanting to buy house in Florida. This phenomenon might be explained by the economic stability the state experiences, for example. The job growth in Florida is developing surprisingly fast. There are many new job offers, especially in the service sector related to tourism. This fast-growing employment makes more and more people interested in moving to the state long-term. Consequently, the demand for traditional rentals in Florida increases as well. Moreover, the tourism sector keeps developing, hence, attracting more tourists than ever. As you can probably guess, the latter leads to the further expansion of Airbnb Florida. In addition, the state constantly develops its infrastructure, and construction development, especially after Hurricane Irma, which hit the state in August- September of last year. To read more on the matter, make sure to check “Is This the Best Time to Buy Property in Florida for Real Estate Investing?”.
It is safe to say that to buy house in Florida is greatly desired by many real estate investors. However, the question of where can you find the best Florida investment properties remains. That is why we will explore the matter in the section below.
#2 Buy House in Florida: Best Places to Invest in Property
The best places to invest in property vary depending on the rental strategy. This is due to the fact that Airbnb Florida and traditional rentals in the state have different target groups. The optimal rental strategy, of course, strongly influences your rental income. Further, when you want to invest in property you need to be certain of what features a certain location has. For instance, long-term rentals are more successful in places with more job opportunities or cities hosting universities. On the contrary, short-term rentals prosper in places with many tourist attractions, leisure events and so on and so forth. In order to help you buy house in Florida, we will present you three of the best places to invest in property in Florida for each rental strategy. To learn more, check out “Florida Real Estate 2018- Where Should I Invest?”
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Airbnb Florida
Lake Worth, Florida
Lake Worth is a city in Palm Beach County. It is popular for the many festivals it hosts. Its downtown is another famous thing, attracting many tourists yearly.
Median Property Price: $ 82,900
Airbnb Rental Income: $ 1,563
Airbnb Cash on Cash Return: 10.6%
Airbnb Cap Rate: 10.6%
Airbnb Occupancy Rate: 51. 61%
Briny Breezes, Florida
Briny Breezes is yet another town in Palm Beach County. Of course, the city is popular for its beach line, but also for its many parks-another great tourist destination.
Median Property Price: $ 152,000
Airbnb Rental Income: $ 1,875
Airbnb Cash on Cash Return: 8.19%
Airbnb Cap Rate: 8.19%
Airbnb Occupancy Rate: 37.46%
Weeki Wachee, Florida
Weeki Wachee is situated in Hernando County. There you can find the deepest naturally formed springs in the United States. Additionally, attractive to travelers is the underwater “mermaid” performances in the spring.
Median Property Price: $ 249,950
Airbnb Rental Income: $ 2,761
Airbnb Cash on Cash Return: 8.13%
Airbnb Cap Rate: 8.13%
Airbnb Occupancy Rate: 59.46%
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Traditional Rentals Florida
Springfield, Florida
Springfield is a city of diverse communities which peacefully live together. It is a great place for long-term rentals due to its well-functioning industry.
Median Property Price: $ 94,000
Traditional Rental Income: $ 1,113
Traditional Cash on Cash Return: 8.51%
Traditional Cap Rate: 8.51%
Tarpon Springs, Florida
Tarpon Springs is an area which was a huge industrial center a while back. Currently, the city is undergoing beautification. The rental income keeps on increasing. Various real estate metrics also prove this town to be a good investment opportunity.
Median Property Price: $ 320,000
Traditional Rental Income: $ 2,486
Traditional Cash on Cash Return: 5.87%
Traditional Cap Rate: 5.87%
Miami Gardens, Florida
Miami Gardens is a suburban location attracting many long-term rentals. Due to the great rental income the properties there generate, it is a desired place for investments.
Median Property Price: $ 232,864
Traditional Rental Income: $ 1,441
Traditional Cash on Cash Return: 2.99%
Traditional Cap Rate: 2.99%
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# 3 You Want to Buy House in Florida? Conduct Real Estate Market Analysis
When you want to buy house in Florida or anywhere else, really, we have a tip for you. It is to conduct real estate market analysis. Real estate market analysis can provide you with information about the market, its current state, the supply and demand. Additionally, through comparison with real estate comps, you can establish the price of the chosen rental property. This is useful so you do not overpay for the price of the property you want to buy. In addition, through the comparison with real estate comps and getting the property price, you can establish how much rent to charge your tenants. Thus, such analysis will help you in making money in real estate.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.