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Is 2018 the Right Time to Invest in Multi-Family Homes in Florida?


Multi-family homes are one of the best types of rental properties for making money in real estate. This type of property is very profitable since it generates high rental income and forced appreciation as a long-term rental. Multi-family homes are suitable real estate investments nationwide, but how do they fit in the Florida real estate market in 2018?

Multi-family Homes in Florida Real Estate

The Florida real estate market is undoubtedly among the top housing markets in the country. Despite increasing investment property prices, The Sunshine State is a premier hub for Airbnb rentals and traditional rentals. Its Airbnb rentals provide high occupancy rates and rental income thanks to its tourist destinations and beaches, and its long-term rentals generate high ROI due to its strong economy.

When it comes to traditional long-term rentals specifically, Florida remains a superb rental market. Both single-family homes and multi-family homes provide a high return on investment and rental income. According to Mashvisor’s real estate market analysis, the best cities for multi-family homes in Florida are Hollywood, Orlando, Miami, St. Petersburg, and Stuart. The city-level and neighborhood-level data mentioned below are provided by Mashvisor’s investment property calculator. To learn more about our product, which includes a real estate market analysis and investment property calculator, click here!

Hollywood

Median Property Price: $332,151

Rental Income: $1,974

Cash on Cash Return / Cap Rate: 3.15%

Hollywood, FL may not carry the world-class status of Hollywood, CA, but it certainly does provide terrific multi-family real estate investment opportunities. Multi-family properties in this city have the highest return on investment in the Florida real estate market. The multi-family homes in Hollywood are also very inexpensive. The top four neighborhoods with multi-family homes for sale in Hollywood are Mapleridge, Park Side, Highland Garden, and Emerald Hills.

1.) Mapleridge

Median Property Price: $160,450

Rental Income: $1,450

Cash on Cash Return / Cap Rate: 4.53% 

2.) Park Side

Median Property Price: $239,400

Rental Income: $1,575

Cash on Cash Return / Cap Rate: 4.54%

3.) Highland Garden

Median Property Price: $226,950

Rental Income: $1,525

Cash on Cash Return / Cap Rate: 4.07%

4.) Emerald Hills

Median Property Price: $202,839

Rental Income: $1,650

Cash on Cash Return / Cap Rate: 3.82% 

Orlando

Median Property Price: $291,110

Rental Income: $1,438

Cash on Cash Return / Cap Rate: 2.28%

Orlando is a renowned real estate investment giant for all forms of short-term rentals and long-term rentals, so there’s no surprise it’s on this list. As you would expect from The City Beautiful, multi-family homes are among the best real estate investments you can find. Orlando’s multi-family homes have the lowest median property price on this list. The best neighborhoods in ORL for multi-family properties are Signal Hill, Metro West, Ventura, and Rosemont North.

1.) Signal Hill

Median Property Price: $116,750

Rental Income: $1,066

Cash on Cash Return / Cap Rate: 3.6%

2.) Metro West

Median Property Price: $173,685

Rental Income: $1,356

Cash on Cash Return / Cap Rate: 3.34%

3.) Ventura

Median Property Price: $146,600

Rental Income: $1,183

Cash on Cash Return / Cap Rate: 3.34%

4.) Rosemont North

Median Property Price: $146,225

Rental Income: $1,140

Cash on Cash Return / Cap Rate: 3.25%

Miami

Median Property Price: $454,720

Rental Income: $1,873

Cash on Cash Return / Cap Rate: 1.71%

Like the aforementioned Orlando, Miami is a well-known destination for real estate investors. While Airbnb rentals are often the dominant form of real estate investments, multi-family properties are also very profitable. The best places with multi-family homes for sale in Miami are Liberty City, Little Haiti, Shenandoah, and Allapattah.

1.) Liberty City

Median Property Price: $274,730

Rental Income: $1,658

Cash on Cash Return / Cap Rate: 2.97%

2.) Little Haiti

Median Property Price: $310,791

Rental Income: $1,815

Cash on Cash Return / Cap Rate: 2.58%

3.) Shenandoah

Median Property Price: $536,980

Rental Income: $2,205

Cash on Cash Return / Cap Rate: 1.72%

4.) Allapattah

Median Property Price: $323,818

Rental Income: $1,712

Cash on Cash Return / Cap Rate: 2.07%

St. Petersburg

Median Property Price: $294,107

Rental Income: $1,432

Cash on Cash Return / Cap Rate: 1.81%

Unlike the previous two cities, St. Petersburg is a city that thrives on traditional long-term rentals. This is strongly due in part to an up-and-coming economy. While Florida real estate as a whole seems to be moving towards a seller’s market, St. Petersburg’s prices appear to be accelerating faster than the usual rate.

If you’re a real estate investor interested in the multi-family homes in St. Pete, be sure to purchase before the spike in prices! The best neighborhoods to focus on are Cromwell Heights, Meadowlawn, Disston Heights, and Woodlawn Oaks.

1.) Cromwell Heights

Median Property Price: $137,500

Rental Income: $1,200

Cash on Cash Return / Cap Rate: 3.9%

2.) Meadowlawn

Median Property Price: $214,450

Rental Income: $1,438

Cash on Cash Return / Cap Rate: 2.69%

3.) Disston Heights

Median Property Price: $172,369

Rental Income: $1,100

Cash on Cash Return / Cap Rate: 2.05%

4.) Woodlawn Oaks

Median Property Price: $181,267

Rental Income: $1,073

Cash on Cash Return / Cap Rate: 2.04%

Stuart

Median Property Price: $475,715

Rental Income: $1,405

Cash on Cash Return / Cap Rate: 1.67%

On the surface, Stuart may seem to be just another small town in Florida. But in reality, it is one of the best places in the state to find multi-family homes for sale. The best neighborhoods in Stuart are Eldorado Heights, Sarita Heights, West Riverside, and St. Lucie Estates.

1.) Eldorado Heights

Median Property Price: $134,900

Rental Income: $1,295

Cash on Cash Return / Cap Rate: 4.95%

2.) Sarita Heights

Median Property Price: $273,419

Rental Income: $2,021

Cash on Cash Return / Cap Rate: 3.14%

3.) West Riverside

Median Property Price: $319,888

Rental Income: $2,200

Cash on Cash Return / Cap Rate: 2.97%

4.) Lucie Estates

Median Property Price: $239,900

Rental Income: $1,395

Cash on Cash Return / Cap Rate: 2.43%

Multi-family homes are an excellent source of rental income and a great expansion for any real estate investment portfolio. For more tips on real estate investing, such as how to pick a rental strategy, how to become among the most successful real estate investors, and answers to question such as what is a multi-family home, visit the Mashvisor blog. To start your free 14-day trial with Mashvisor, click here!

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Hamza Abdul-Samad

Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property.

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