Florida real estate investment opportunities are plentiful, but succeeding in this market today requires careful consideration of location. Investors often buy homes within the Sunshine State to use as vacation rentals, but offering long-term rental homes might be a better option for now.
Those considering investing in Florida real estate may find it beneficial to work with real estate agents familiar with the state. Many real estate agents specialize in foreclosure sales and bank short sales and can help investors locate discounted properties.
Due to the fact that many Floridians have lost their homes to foreclosure, there is ample opportunity for investors to generate income by offering long-term rentals. Once homeowners lose their property to foreclosure, they are typically forced to become renters until they can qualify for another home loan.
Although Florida has been hit hard by foreclosure, there are still plenty of opportunities to generate cash flow with investment properties. Since Florida is one of the most popular vacation destinations in the world, many investors are looking for beachfront homes. However, it may be beneficial to explore homes in Orlando and Daytona, as these areas are home to tourist attractions such as theme parks and auto racing.
central florida
Orange County, home to Orlando, offers a multitude of great real estate deals. Orlando has a bad reputation for having a high incidence of crime. There are some areas that fall into the high crime area and should probably be avoided. These include Kissimmee and Pine Hills, along with homes located on Orange Blossom Trail or International Drive, where most major tourist attractions are located.
Safe areas around the Orlando metro include: Oviedo, Dr. Phillips, Altamonte Springs, Baldwin Park, and Winter Park.
East Central Florida
Volusia County is located on the central east coast of Florida and encompasses a variety of coastal cities, including Daytona Beach. Daytona offers racing excitement nearly year-round with NASCAR, Formula One, Grand Am, and motorcycle racing hosted at Daytona International Speedway.
The racetrack is almost a short drive from the Daytona Beach International Airport. The immediate area consists primarily of retail stores and hotels, but several residential communities are located within a 5-mile radius.
It’s important to first determine if the properties are located in communities governed by HOAs, as HOAs often prohibit short-term vacation rentals. It can be advantageous to work with a real estate agent when looking for investment properties in this area. Popular locations include Williamson Boulevard, Clyde Morris Boulevard, and Tomoka Farms Road.
South Florida
Investors often shy away from the Florida Keys out of fear that these properties are cost prohibitive. Although some homes are priced higher than elsewhere within the state, there are still great deals to be found. Investors should plan to keep an eye on property listings within the Florida Keys because these homes tend to sell quickly.
Key West is a favorite location for many investors because visitors are willing to pay higher rental rates when they escape to paradise. Homes in this region can be a bit pricey, but with patience and perseverance, investors can find discounted properties.
The median cost of a 2-bedroom, 1-bathroom oceanside cottage in Key West is $185,500, while a 3-bedroom, 2-bathroom pool home is around $500,000. Investors buying property in Key West They tend to generate a higher level of cash flow because people who rent beach houses in the Florida Keys tend to have higher incomes.
Regardless of your budget, there are many real estate investment opportunities in Florida. In addition to residential homes, condos, and townhomes, investors can find great deals on commercial real estate or even purchase a private island.