Investing in vacation home rentals is seen as one of the best ways to be involved in the world of real estate investing. Moreover, by investing in a vacation home, the real estate investor ensures that there is always a place to stay during his/her holiday. Additionally, for the rest of the year, the real estate investor can start renting out on Airbnb his/her second home and make money off of it.
Florida is definitely one of the best choices where a real estate investor can make a fortune renting out on Airbnb. However, the Florida real estate market is vast and if a real estate investor is not familiar with it, there is a chance that he/she will fail. So, what are the best places to invest in real estate in Florida?
Moreover, what are the most affordable locations for vacation home rentals in this market? Just continue reading and you will find out which are the best places to invest in real estate in Florida.
#1 What Are Vacation Home Rentals?
Vacation home rentals are categorized as low risk rental income properties. There are several reasons for vacation home rentals to be categorized as low risk rental income properties. First of all comes the fact that most of the time real estate investors purchase such income properties as their second home. In order for a vacation home to generate some profit, the optimal rental strategy is chosen.
Typically, such Florida investment properties are placed on the market as short term rental properties. The second reason such Florida investment properties are considered as low risk investment properties is due to the fact that there is always a demand for short term rentals. This is true when vacation home rentals are located in top tourist destination points.
However, many Florida real estate investors are not able to afford investing in vacation home rentals at every given location. This is why in this blog we will review the most affordable locations for your potential Airbnb rentals. The data is provided by Mashvisor’s investment property calculator.
Interested to learn how to increase bookings for vacation home rentals? Make sure to read “Marketing Vacation Home Rentals to Increase Bookings.”
#2 The Most Affordable Locations for Buying Vacation Home Rentals: The Tampa Real Estate Market
Tampa is one of the cities Florida real estate investors should consider when planning on investing in Airbnb rentals. Brilliant beach options are not the only reason many tourists visit this city. Tampa is also a business center.
Moreover, this city hosts many cultural events that bring potential Airbnb guests to this beautiful location. Why is Tampa such a hot market though? Learn by reading “Tampa Real Estate Is a Hot Market in 2018! Here’s Why.”
Airbnb Florida Real Estate – Historic Ybor
- Median Property Price: $189,650
- Airbnb Rental Income: $1,890
- Airbnb Cash on Cash Return: 4.47%
- Airbnb Cap Rate: 4.47%
- Airbnb Occupancy Rate: 55.76%
Airbnb Florida Real Estate – South Seminole Heights
- Median Property Price: $318,220
- Airbnb Rental Income: $2,375
- Airbnb Cash on Cash Return: 3.58%
- Airbnb Cap Rate: 3.58%
- Airbnb Occupancy Rate: 49.82%
Airbnb Florida Real Estate – Tampa-Bayshore Gardens
- Median Property Price: $390,372
- Airbnb Rental Income: $2,624
- Airbnb Cash on Cash Return: 2.13%
- Airbnb Cap Rate: 2.13%
- Airbnb Occupancy Rate: 62.11%
#3 The Most Affordable Locations for Buying Vacation Home Rentals: The Miami Real Estate Market
Well, when thinking about what is the best location for vacation home rentals, Florida real estate investors cannot just skip Miami. Miami is seen by many real estate investors as one of the best places to invest in real estate in Florida simply because it is one of the hottest resort destinations.
Consequently, adopting the rental strategy of vacation home properties is seen as a very lucrative activity. This gives the Airbnb host the opportunity to turn into a full-time landlord as you will have a good workload with potential Airbnb rentals.
Airbnb Florida Real Estate – Little Havana
- Median Property Price: $495,368
- Airbnb Rental Income: $1,040
- Airbnb Cash on Cash Return: 0.29%
- Airbnb Cap Rate: 0.29%
- Airbnb Occupancy Rate: 45%
Airbnb Florida Real Estate – Shenandoah
- Median Property Price: $574,176
- Airbnb Rental Income: $2,033
- Airbnb Cash on Cash Return: 1.18%
- Airbnb Cap Rate: 1.18%
- Airbnb Occupancy Rate: 49.97%
#4 The Most Affordable Locations for Buying Vacation Home Rentals: The Orlando Real Estate Market
Orlando is one of the most visited family destinations in the world. Not only is the climate pleasant for many travelers, but this city is actually full of attractions. For instance, Disney World and Universal Orlando Park welcome tens of millions of visitors yearly. However, not only this attracts tourists to visit Orlando. This city is beautiful and is full of other attractions, such as zoos, giant aquariums, water parks and many others.
Consequently, this brings a huge benefit to every Airbnb host owning short term rental properties here. Moreover, with the help of Mashvisor’s rental property calculator, Florida real estate investors will be able to select the exact location for short term rentals with high return on investment rates.
Airbnb Florida Real Estate – Central Business District
- Median Property Price: $334,000
- Airbnb Rental Income: $1,987
- Airbnb Cash on Cash Return: 0.2%
- Airbnb Cap Rate: 0.2%
- Airbnb Occupancy Rate: 59.62%
Airbnb Florida Real Estate – Florida Center North
- Median Property Price: $223,641
- Airbnb Rental Income: $2,073
- Airbnb Cash on Cash Return: 3.17%
- Airbnb Cap Rate: 3.71%
- Airbnb Occupancy Rate: 56.91%
Airbnb Florida Real Estate – Lake Copeland
- Median Property Price: $354,375
- Airbnb Rental Income: $2,101
- Airbnb Cash on Cash Return: 0.22%
- Airbnb Cap Rate: 0.22%
- Airbnb Occupancy Rate: 64.87%
#5 The Most Affordable Locations for Buying Vacation Home Rentals: The Fort Lauderdale Real Estate Market
We have selected three neighborhoods in Fort Lauderdale. These Florida real estate market neighborhoods are perfect for potential vacation home rentals as many of the short term rental properties are located in calm and quiet areas.
Moreover, short term rentals are located in the areas that are close to such tourist destination as shopping centers, dining places, entertainment activities, and much more. Interested to know if you should invest in Fort Lauderdale? If yes, then make sure to read “Should You Invest in Short Term Rentals in Fort Lauderdale?”
Airbnb Florida Real Estate – Middle River Terrace
- Median Property Price: $698,678
- Airbnb Rental Income: $2,667
- Airbnb Cash on Cash Return: 1.04%
- Airbnb Cap Rate: 1.04%
- Airbnb Occupancy Rate: 49.01%
Airbnb Florida Real Estate – Lake Ridge
- Median Property Price: $698,678
- Airbnb Rental Income: $2,667
- Airbnb Cash on Cash Return: 1.04%
- Airbnb Cap Rate: 1.04%
- Airbnb Occupancy Rate: 49.01%
Airbnb Florida Real Estate – Poinsettia Heights
- Median Property Price: $698,678
- Airbnb Rental Income: $2,667
- Airbnb Cash on Cash Return: 1.04%
- Airbnb Cap Rate: 1.04%
- Airbnb Occupancy Rate: 49.01%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.