How to Find the Best Florida Rental Properties for Sale

Florida remains one of the hottest real estate markets out there. But is investing in rental properties for sale in Florida truly worth it?

Table of Contents

1. Is It a Good Idea to Buy Rental Property in Florida?
2. The 10 Best Cities for Buying Florida Rental Properties for Sale
3. Find the Best Rental Properties for Sale in Florida in 2 Steps

Nicknamed “The Sunshine State,” Florida is the third-most populous state in the US. With a population of more than 21 million, the state is renowned for its orange crops, amusement parks, and retirement-friendly setting. It is also known for its pristine sandy beaches, warm water, and extensive marshlands. 

Florida boasts a number of bustling metropolises, such as Jacksonville, Tampa, Orlando, and Miami. Due to its warm and sunny weather all year round, Florida attracts millions of tourists and migrants every year.

Thanks to the above trends and more, buying property in Florida to rent out traditionally or on Airbnb has become a very lucrative business. In fact, it is known to many real estate investors as one of the best states to invest in rental properties. The state consistently receives an influx of investors hoping to capitalize on these markets year after year.

It is one of the country’s hottest vacation or short-term rental markets. If you are able to find a good rental property for sale in notable FL locations, you will want to take advantage of it. We’ll tell you why in a bit. 

But how can you find the best Florida rental properties for sale? In this guide, we will discuss the benefits of investing in traditional and vacation rentals in Florida. We will also show you how to locate the right rental properties using Mashvisor as a tool. 

Is It a Good Idea to Buy Rental Property in Florida?

Investing in rental properties is one of the best ways an investor can make good money. Rental property investments bring certain benefits that other investment vehicles do not. 

For instance, rental properties – whether long-term or short-term – give you a passive income source that other methods like house flipping, BRRRR strategy, or micro flipping cannot. It also comes with certain tax benefits, such as capital gains tax deferral and depreciation. 

Now, investing in rental properties for sale will require the right investment strategy for it to become a success. You need first to determine that the location you’re considering can give you not just a good return on investment but a positive cash flow as well. Not all Florida properties are created equal, after all. 

Take, for instance, Orlando and Clearwater Beach. Both locations offer residents and visitors plenty of fun things to do and picturesque natural backdrops. However, as rental property investment locations, they provide different numbers to investors. 

Orlando properties for sale are far more affordable at a median price of $465,154 compared to rental properties for sale in Clearwater Beach Florida, which has a median property price of $1,183,668. Orlando’s cash on cash return rates for traditional and Airbnb investments are 2.19% and 2.46%, respectively. Clearwater Beach, on the other hand, offers cash on cash return of only 0.70% for traditional rentals and -1.36% for short-term rentals. 

It is why doing extensive research is important in real estate investing. You would want to ensure that every dollar you invest gives you the optimum ROI. 

That said, let’s talk about the risks and rewards of investing in Florida real estate for sale. 

Pros and Cons of Investing in Florida Rental Properties

Buying properties for sale in Florida for long-term or short-term rentals comes with certain advantages and disadvantages. 

Some of the pros of rental properties for sale in Florida are: 

• Good ROI. The state of Florida has a good track record of high investment returns.
• Leverage. Financing is easily accessible for roughly 70% of the listing price. 
• Tax Advantages. Florida offers both income and capital gains tax benefits. It will vary, though, depending on which county the property is located.
• Equity Buildup. Your equity grows over time as the property appreciates and as loans get paid off. 

On the other hand, some of the disadvantages of buying rental properties for sale in Florida are: 

• Local Market. The available market is localized, unlike most popular stocks and shares.
• Lack of Liquidity. If you wish to convert your asset to cash, the entire sales process is quite lengthy.
• Risk. Inflation and other factors that affect the cost of living can negatively impact rental property investment. 
• Purchase and Ownership Costs. You must deal with expensive commissions and taxes upon purchasing a for-sale property. You also need to deal with maintenance and operating expenses if you have rental properties, whether they’re long-term or short-term rentals. 

Is Florida Friendly to Rental Property Investors?

Generally, Florida is a good place to start for rental property investors. Whether you plan on buying a property for sale to convert into a long-term rental or if you want to go the Airbnb route and do a short-term rental business. 

Florida remains one of the best states that can generate high rental income and positive cash flow for both landlords and vacation rental owners. 

If you buy a property for sale in Florida to convert into a traditional rental, you will find that it is a landlord-friendly state for the following reasons: 

• It is a great place to live in and retire to. 
• The demand for Florida housing is strong. 
• The state has favorable security deposit and eviction laws. 
• There are no rental control ordinances in the state.

If you plan to buy a property for sale in Florida to turn into a short-term rental, you will find it to be a very good investment move for the following reasons: 

• Florida has many great tourist cities, like Orlando and Miami, attracting millions of tourists. 
• The state has pleasant weather all year round, which makes it a great vacation destination. 
• On top of being home to some of the finest tourist attractions in the US, Florida is also growing as a business hub.
• Florida’s local legal and regulatory atmosphere is quite friendly to owners of vacation rental properties. 

Buying for sale properties in Florida and converting them into rental properties is one of the best things you can do with your money. You just need to know where to look for income properties for sale for the most optimum investment returns.

The 10 Best Cities for Buying Florida Rental Properties for Sale

Location is one of the priorities of any real estate investor. Before buying a property for sale, you need to determine the location’s profitability. A few things determine a location’s profitability, but it boils down to the following factors: 

• Property Price. How much the property costs will give you an idea of how long it will take you to recoup the initial investment.
• Cash on Cash Return. The property’s net operating income is divided by the total amount of cash invested in the property and not the property’s price or market value.
• Price to Rent Ratio (for Traditional Rentals). A rating of 20 and above indicates that it is more cost-efficient to rent a house than buy one.
• Occupancy Rate (for Vacation Rentals). This shows the number of days a property is occupied versus the number of days it is available for booking. 

The following locations have been selected based on the following criteria: 

• Property price of below $1,000,000
• Cash on cash return of no less than 2%
• A price to rent ratio of 20 and above 
• An Airbnb occupancy rate of above 50% 

The criteria above are used to determine locations that will give you the best return on your investment in the shortest time possible. 

Both lists for top Florida rental property locations were taken from Mashvisor’s latest data and ranked from the highest cash on cash return to the lowest. That said, here are 10 of the best places to buy Florida investment properties for sale.

5 Best Cities to Invest in Vacation Rentals

The Florida real estate market is generally Airbnb-friendly. However, not every city allows non-owner-occupied Airbnbs to operate. You will want to keep this in mind before setting out to buy a Florida property for sale.

Here, we’ve listed the top cities based on Mashvisor’s Airbnb rental data as of August 2022, ranked from the highest to the lowest cash on cash returns. But you’ll need to take the research one step further and look up the regulations to ensure that investing in Airbnb in your chosen location is legal.

1. Sweetwater

• Median Property Price: $554,607
• Average Price per Square Foot: $358
• Days on Market: 61
• Monthly Airbnb Rental Income: $4,332
• Airbnb Cash on Cash Return: 7.37%
• Airbnb Cap Rate: 7.54%
• Airbnb Daily Rate: $180
• Airbnb Occupancy Rate: 51%
• Walk Score: 82

2. Inverness

• Median Property Price: $317,326
• Average Price per Square Foot: $197
• Days on Market: 46
• Monthly Airbnb Rental Income: $2,762
• Airbnb Cash on Cash Return: 5.52%
• Airbnb Cap Rate: 5.69%
• Airbnb Daily Rate: $173
• Airbnb Occupancy Rate: 54%
• Walk Score: 34

3. Fern Park

• Median Property Price: $267,130
• Average Price per Square Foot: $180
• Days on Market: 51
• Monthly Airbnb Rental Income: $2,875
• Airbnb Cash on Cash Return: 5.18%
• Airbnb Cap Rate: 5.38%
• Airbnb Daily Rate: $154
• Airbnb Occupancy Rate: 62%
• Walk Score: 57

4. Palm Harbor

• Median Property Price: $528,342
• Average Price per Square Foot: $289
• Days on Market: 42
• Monthly Airbnb Rental Income: $4,486
• Airbnb Cash on Cash Return: 5.09%
• Airbnb Cap Rate: 5.19%
• Airbnb Daily Rate: $213
• Airbnb Occupancy Rate: 60%
• Walk Score: 64

5. Seminole

• Median Property Price: $478,225
• Average Price per Square Foot: $307
• Days on Market: 44
• Monthly Airbnb Rental Income: $3,955
• Airbnb Cash on Cash Return: 5.06%
• Airbnb Cap Rate: 5.18%
• Airbnb Daily Rate: $279
• Airbnb Occupancy Rate: 57%
• Walk Score: 80

5 Best Cities to Invest in Traditional Florida Rental Properties for Sale

According to Mashvisor’s August 2022 data, the following are the top locations for traditional rental properties in sunny Florida: 

1. Vero Beach

• Median Property Price: $728,534
• Average Price per Square Foot: $296
• Days on Market: 75
• Monthly Traditional Rental Income: $2,536
• Traditional Cash on Cash Return: 4.28%
• Traditional Cap Rate: 4.39%
• Price to Rent Ratio: 24
• Walk Score: 78

2. Delray Beach

• Median Property Price: $710,714
• Average Price per Square Foot: $392
• Days on Market: 42
• Monthly Traditional Rental Income: $2,974
• Traditional Cash on Cash Return: 3.80%
• Traditional Cap Rate: 3.93%
• Price to Rent Ratio: 20
• Walk Score: 87

3. Englewood

• Median Property Price: $628,556
• Average Price per Square Foot: $366
• Days on Market: 64
• Monthly Traditional Rental Income: $2,499
• Traditional Cash on Cash Return: 3.64%
• Traditional Cap Rate: 3.73%
• Price to Rent Ratio: 21
• Walk Score: 65

4. Riviera Beach

• Median Property Price: $715,900
• Average Price per Square Foot: $415
• Days on Market: 70
• Monthly Traditional Rental Income: $2,953
• Traditional Cash on Cash Return: 3.57%
• Traditional Cap Rate: 3.65%
• Price to Rent Ratio: 20
• Walk Score: 43

5. Stuart

• Median Property Price: $675,754
• Average Price per Square Foot: $359
• Days on Market: 49
• Monthly Traditional Rental Income: $2,872
• Traditional Cash on Cash Return: 3.31%
• Traditional Cap Rate: 3.38%
• Price to Rent Ratio: 20
• Walk Score: 40

Now, you’ve narrowed down your choice of cities. So, what’s the next step to finding residential income properties in the traditional or Airbnb Florida real estate market?

Find the Best Rental Properties for Sale in Florida in 2 Steps

Finding the right property for sale involves using the right tools. The different tools help ensure the property generates a positive cash flow and allows you to make a decent profit. 

For the best tools for the job, a real estate website like Mashvisor comes in handy. The website will give you access to a huge database filled with regularly updated data. It allows you to make ROI projections that are accurate and realistic. 

The site also allows you to find the best neighborhoods that are performing exceptionally well in terms of monthly rental income and cash on cash return. Here are a couple of simple ways that Mashvisor can help you in your investing journey:

1. Find the Best Neighborhood

Let’s say you’ve identified the Key West real estate market as a good location for investing in a traditional rental or vacation home. The next thing you need to do is conduct a neighborhood analysis to find the best places to buy a rental property in Key West. 

Mashvisor’s real estate heatmap will show you the most lucrative neighborhoods for investing in condos, single-family homes, or multi-family homes for sale in Florida. 

You can filter your search for areas with Florida rental properties for sale using filters such as listing price, rental income (Airbnb and Traditional), Airbnb occupancy rate, and cash on cash return (Airbnb and Traditional). The filters can help you, for example, find more affordable neighborhoods in Key West! 

A rental market analysis should also involve assessing the desirability of the area. Here are some of the things you need to look out for before choosing an area for buying Florida rental properties for sale:

• Crime rate
• Availability of good schools
• Walkability
• Access to public transportation
• Outdoor activities (swimming pools, parks, tennis courts, beaches, restaurants, etc.)
• Noise and air pollution levels
• Retail and grocery stores
• Proximity to medical services

To get a feel of the neighborhoods, you can just drive around at different times of the day. Also, consider hiring an experienced real estate agent to advise you on the best places to invest in real estate in Florida.

2. Conduct a Rental Property Analysis

After identifying a good neighborhood for buying Florida rental properties for sale, the next step is to conduct a rental property analysis on individual properties. It involves using an investment property calculator, like Mashvisor’s, to estimate the potential returns from a rental. Our calculator uses predictive analytics and property data to give very accurate results.

Mashvisor’s investment property calculator will provide the following metrics on Florida rental properties for sale:

• Rental property expenses – These include costs such as repairs, inspection, closing costs, insurance, property management fees, property tax, utilities, and HOA fees.
• Cash flow – This refers to what is left after settling your monthly rental expenses. A positive cash flow means you don’t need to spend money from your pocket to cover expenses.
• Cash on cash return – This metric shows the return expected from a rental based on the amount of money invested.
• Cap rate – This metric estimates the profitability of an investment property without considering the method of financing.

The rental property calculator also comes with special features, such as the ability to show you the optimal rental strategy, investment payback balance, and real estate comps.

To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.

Ready to Find the Best Florida Rental Properties for Sale?

Buying Florida rental properties for sale is a smart move for both beginner and seasoned investors. Although certain risks are involved, it is a great place for both traditional and vacation rental properties that will give you a very good passive income source. 

Just keep in mind that not any old rental property in the Florida housing market will be profitable. You need to know how to find the best ones. A website like Mashvisor can help you do so by giving you access to an accurate database of properties. You can also take advantage of the platform’s exceptional investing tools that will give you the numbers you need to make an informed decision. 

Simply use Mashvisor tools, and you will find the ideal Florida rental properties for sale within no time. With that, you’ll be taking the first steps, and you’ll no longer need to ask yourself how to find vacation rental properties for sale in Florida or traditional rentals.

To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.