As part of our US housing market predictions for 2020, Mashvisor put together a list of the best multi family markets. What we noticed when looking at the real estate market data was that many of the best cities to invest in multi family homes could be found in the Florida housing market. So we thought it important to show you how you can quickly and easily find top-performing multi family homes for sale in Florida.
We will start by providing you with a complete list of the 10 best cities in Florida for buying multi family homes based on cap rates. These are the cities where future Florida real estate investors should start their search for multi family homes for sale (2-4 units).
10 Best Places for Buying Multi Family Homes in the Florida Real Estate Market
#1. Marco Island
- Median Property Price: $682,029
- Price to Rent Ratio: 11
- Traditional Rental Income: $5,128
- Multi Family Cap Rate: 5.4%
#2. Naples
- Median Property Price: $386,698
- Price to Rent Ratio: 11
- Traditional Rental Income: $2,993
- Multi Family Cap Rate: 5.1%
#3. Fort Myers
- Median Property Price: $201,053
- Price to Rent Ratio: 14
- Traditional Rental Income: $1,230
- Multi Family Cap Rate: 2.4%
According to Mashvisor’s data, you will likely find the most affordable multi family homes for sale in Florida in the Fort Myers real estate market. Start your search now.
#4. Jacksonville
- Median Property Price: $215,352
- Price to Rent Ratio: 16
- Traditional Rental Income: $1,138
- Multi Family Cap Rate: 2.0%
#5. Melbourne
- Median Property Price: $325,713
- Price to Rent Ratio: 17
- Traditional Rental Income: $1,570
- Multi Family Cap Rate: 2.0%
#6. Orlando
- Median Property Price: $407,000
- Price to Rent Ratio: 21
- Traditional Rental Income: $1,619
- Multi Family Cap Rate: 2.0%
Check out the full Orlando real estate market report.
#7. Tampa
- Median Property Price: $348,042
- Price to Rent Ratio: 22
- Traditional Rental Income: $1,308
- Multi Family Cap Rate: 1.8%
Check out the full Tampa real estate market report.
#8. Miami
- Median Property Price: $538,317
- Price to Rent Ratio: 21
- Traditional Rental Income: $2,192
- Multi Family Cap Rate: 1.3%
Check out the full Miami real estate market report.
#9. West Palm Beach
- Median Property Price: $421,261
- Price to Rent Ratio: 22
- Traditional Rental Income: $1,581
- Multi Family Cap Rate: 1.2%
#10. Clearwater
- Median Property Price: $296,593
- Price to Rent Ratio: 21
- Traditional Rental Income: $1,166
- Multi Family Cap Rate: 1.1%
Not sure where to start your search for multi family homes for sale in Florida? We put together a comprehensive guide that will help you choose the best city to invest in real estate: How to Choose a Real Estate Market to Invest In.
Related: The 10 Best Places to Invest in Real Estate in Florida in 2020
How to Find the Best Multi Family Homes for Sale in Florida
Once you’ve selected a city in the Florida real estate market, it’s time to start searching for multi family properties. Now, if you’re not a resident of Florida and instead buying a rental property out of state, the best way to find Florida multi family homes for sale is online. While there are a few different real estate investor websites where you can start your multi family property search, the quickest and easiest way is to use Mashvisor’s investment property search tools. Here are the steps to follow to find high return multi family homes for sale in Florida using Mashvisor:
Step #1: Find the Best Neighborhoods for Investing in Florida Real Estate
Let’s say that you’ve completed your real estate market analysis on the above 10 cities and found that the Jacksonville real estate market is the best place for investing in multi family homes:
- You’ve found that the median listing price fits your budget.
- The average cap rate makes for a good return on investment.
- The price to rent ratio is also higher than 15 which means most residents will find it more affordable to live in rental properties rather than buy their own homes.
Related: How to Research Real Estate Markets: The Beginner’s Guide
Whatever city you choose, whether it’s in the North or South Florida real estate market, you need to conduct a neighborhood analysis on it. For this step, it’s best to use Mashvisor’s Real Estate Heatmap Analysis Tool. This real estate investment software solution allows you to conduct a neighborhood analysis based on the following metrics:
- Listing Price
- Airbnb Cash on Cash Return
- Traditional Cash on Cash Return
- Airbnb Rental Income
- Traditional Rental Income
- Airbnb Occupancy Rate
When buying a property in Florida, you should be focused on your return on investment. Which neighborhoods will give you the highest return? To get the answer in seconds, select the Traditional Cash on Cash Return filter. All the Jacksonville neighborhoods that turn green will offer good cash on cash return. Take a look:
If you want to ensure that you’re only evaluating neighborhoods with multi family homes for sale, then you’ll need to sign up for an Expert Plan with Mashvisor. This will give you access to the multi family filter:
This filter will help you conduct a neighborhood analysis of areas that currently have multi family homes for sale, including fourplexes, triplexes, and duplexes for sale.
Using this tool and the appropriate filters, you’ll easily find profitable and affordable multi family homes for sale in Florida. Try it out now for yourself by signing up for Mashvisor today.
Step #2: Conduct a Multi Family Real Estate Investment Analysis
Depending on the neighborhood your analysis deems as the best, you may be looking at a few Florida investment properties for sale or over a dozen. It’s time to narrow them down to one and find the best multi family home for sale in Florida. This requires that you conduct a thorough multi family real estate investment analysis. Now, if you only have two or three potential Florida rental properties, it might make sense to use investment analysis spreadsheets. But even then, things could get complicated as you’ll want to gather data on the following in order to complete a full property analysis:
- Rental Income
- Rental Property Expenses
- Occupancy Rate
- Cash Flow
- Cap Rate
- Cash on Cash Return
So it’s best to use an online calculator when analyzing multi family homes for sale in Florida. Mashvisor’s Multi Family Investment Calculator is the tool for the job. Here’s a quick look at what this real estate investment tool will provide you for every multi family listing on the platform:
You’ll also get property data such as rental comps, real estate sales comps, tax history, investment payback balance, and more. You can even add your own listing for a multi family home in Florida and get the available data needed for a full investment property analysis. Using this tool will ensure you find one of the best multi family homes for sale in Florida – a property that you can afford that will bring a high return on investment.
How Can You Find Off Market Multi Family Homes for Sale in Florida?
A lot of real estate investors looking for multi family homes for sale in Florida are actually interested in finding off market properties. If this is more up your alley, you should visit the Mashvisor Property Marketplace. Here, you can find off market multi family for sale including:
- Short Sales
- Bank Owned Homes
- Multi Family Foreclosures
- Auction Homes
What’s more, you can analyze off market properties for sale easily using the multi family investment calculator.
Start Your Search for a Florida Real Estate Investment Today
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