Real estate investors from all corners of the nation are now turning their attention to investment properties in Florida as they build and enhance their rental portfolios. The Sunshine State has emerged as a popular choice among real estate investors for a variety of compelling factors, including its strong economy, appealing property prices, and stable rental market environment. Easy Street Capital is excited to lead the way as a top-tier source of investment property loans, catering to real estate investors who are eager to establish rental portfolios in Florida!
Types of Investment Property Loans for Florida Real Estate Investors
When it comes to real estate investing in Florida, there are a variety of markets and types of investment property loans to choose from. Florida has plenty of older properties in need of renovators to restore them to rent-ready status. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These investment property loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick return or pursue the BRRRR Strategy by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are already rent-ready and require no renovations. Move-in ready single family homes and multi-unit properties (such as duplexes or triplexes) are great for cash flow and price appreciation. Most DSCR Loans are fixed rate for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. Bottom line, debt costs stay the same while cash flow increases!
Florida: Landlord-Friendly State
In terms of regulation, Florida is generally considered to be a landlord-friendly state in terms of its landlord-tenant laws. Owners of rental properties, such as typical DSCR Loan borrowers, are secure investing in the state. One specific reason is that Florida does not have rent control laws. This means that landlords have flexibility in setting rental prices and adjusting them over time as needed. Additionally, Florida landlords have the right to terminate a lease with relatively short notice (typically 15-60 days). They can terminate a lease on various grounds, such as a tenant failing to pay rent or violating the terms of their lease.
Overall, Florida is a landlord-friendly state that offers many advantages for investors interested in rental properties. With its favorable rental market conditions, landlords can enjoy the freedom to set rents at market rates and take necessary actions to protect their investment.
Where To Invest In Real Estate In Florida
From bustling urban centers to serene coastal retreats, Florida’s real estate market has attractive offerings for all types of investors. The state’s consistent popularity, coupled with its favorable climate and robust tourism, creates a compelling proposition for real estate investors seeking stability and growth.
Miami is the largest metropolitan areas in Florida and one of the most prominent urban centers in all of North America. Orlando radiates an exciting blend of theme park enchantment, entertainment, and diverse attractions, making it a vibrant and captivating city for all to explore. Tampa showcases a thriving metropolitan vibe, blending modern sophistication with Southern charm to craft a dynamic urban experience. A short journey north leads you to Jacksonville, a city that stands as a prominent hub in the state.
Located on the Gulf Coast, Pensacola enchants visitors with its coastal allure and a seamless blend of history and contemporary life. Fort Lauderdale boasts a strong short-term rental market, offering a coastal sanctuary that captures the essence of relaxation and rejuvenation. Gainesville, a close-knit community nestled in the heart of the state, is home to the University of Florida. Key West, a picturesque island city with a thriving STR market.
Miami
Miami, a vibrant city known for its diverse culture and stunning beaches, has a population of over 400,000 residents. The city’s flourishing sectors in tourism, real estate, and entertainment provide stable opportunities for renters and investors alike. Home to renowned corporations such as Carnival Corporation, World Fuel Services, and Lennar Corporation, Miami’s business landscape attracts a skilled workforce seeking rental accommodations.
Positioned as a global tourist magnet, Miami allures visitors from across the globe with attractions like South Beach, Art Deco Historic District, and its thriving culinary scene, creating a magnetic appeal. The thriving tourism industry contributes to the growth of short-term rentals, particularly in key areas such as Miami Beach, Downtown, and the Design District.
Despite rising interest rates, Miami’s real estate market remains resilient. Miami-Dade County’s January sales report this year stated that the condo sales dollar volume surged to $466 million, despite a slight dip in units sold. With a median sale price of $400,000 and prices per square foot ranging from $125 to $4,703, Miami offers diverse investment opportunities. The promising rental market outlook further solidifies Miami’s appeal to investors seeking dynamic real estate opportunities. In addition, the price-to-rent ratio for Miami was 13.47 in 2023, one of the lowest out of the 50 largest cities in the country. While this figure alone could lead one to infer that buying is more favorable than renting in the city, it is important to take other factors into consideration.
In January 2024, the median sale price of a home in Miami was $599,000 according to Redfin. Higher price points combined with high interest rates make Miami a cost-prohibitive market for many homebuyers. For this reason, rental demand remains steady in the city. RentCafe ranks Miami as the most competitive rental market in the nation
Miami offers an array of captivating features, from the iconic Art Basel event, the historic Venetian Pool, to the bustling Bayside Marketplace. Its scenic coastal setting enhances its allure, driving a vibrant short-term rental sector that mirrors the city’s lively ambiance. With Miami’s thriving economy, diverse attractions, and steady population growth, it stands as an enticing prospect for real estate investors interested in single-family and multifamily properties, promising a potentially rewarding investment opportunity.
Orlando
This city of over 280,000, celebrated for its theme parks and cultural diversity, offers a wide range of real estate investment opportunities.
As a favored destination for tourists and business travelers alike, Orlando draws visitors globally. The city’s renowned attractions, such as Walt Disney World and Universal Studios, contribute to a thriving short-term rental market. Moreover, Orlando boasts numerous picturesque outdoor locations for nature enthusiasts, including Lake Eola Park and Harry P. Leu Gardens. The city’s varied demand drivers have propelled it to success as a prime short-term rental destination. Many investors target sought-after neighborhoods like Lake Buena Vista, International Drive, and Winter Park in particular. Beyond its attractions, Orlando is also acclaimed for its vibrant arts scene and culinary offerings.
Orlando is another highly competitive, growing real estate market. Between November 2023 to January 2024, Orlando, FL was ranked one of the most popular metro areas in the nation where people are moving to according to Redfin. The median sale price of a home in this city was $403,500 in January 2024. A growing population and economy coupled with relative affordability in terms of cost of living were among the top reasons why Norada Real Estate Investments ranked this city as the sixth best city to invest in real estate in 2024.
Tourism isn’t the only component of this city’s economy. Orlando boasts a robust economy that encompasses sectors such as technology, healthcare, and finance. This diverse job market creates a demand for medium-term rental properties to cater to temporary and relocating workers.
With its bustling employment opportunities and the need for flexible housing solutions, investors who strategically acquire properties in close proximity to these dynamic job centers can tap into a specialized market poised for growth. Real estate investments in Orlando present the potential to generate significant monthly income, offering a promising avenue for investors seeking to thrive in this vibrant city.
Tampa
Tampa, situated along Florida’s Gulf Coast, boasts a population of over 400,000 residents. With a diverse economy centered around industries like finance, healthcare, and tourism, Tampa offers a robust employment landscape and rental stability. The city is home to major corporations such as Raymond James Financial and Publix Super Markets, drawing a skilled workforce seeking rental accommodations.
As a significant cultural and commercial center, Tampa attracts visitors from across the globe. Its renowned attractions, including the Tampa Riverwalk, Busch Gardens, and vibrant culinary scene, create an appealing draw for tourists. These factors contribute to a thriving short-term rental market, particularly in areas like Downtown Tampa, Channelside, and Ybor City.
Investors in Tampa can capitalize on the city’s solid rental market. According to Zillow, the median market rent in February of 2023 in Tampa is $2,139 per month, offering favorable returns on investment. Additionally, the average price of a single-family home, according to Redfin, is $400,000. In the last three years, the National Association of Realtors reported price appreciation of roughly 48.2% in the Tampa market. This business-friendly, steadily growing environment makes Tampa an attractive market for real estate investors.
Tampa presents an array of attractions, from the stunning Busch Gardens, Tampa Bay History Center, to the excitement of professional sports teams. Outdoor havens like Bayshore Boulevard and entertainment at Amalie Arena further amplify the demand for a dynamic short-term rental market.
Jacksonville
Jacksonville, situated along Florida’s northeastern coast, is a the state’s largest city with a population exceeding 900,000. The city boasts a diverse and robust economy driven by industries like healthcare, military, tourism, and technology. It houses major employers such as Mayo Clinic, Naval Air Station Jacksonville, and CSX Corporation.
Cultural attractions flourish in Jacksonville, enriched by its history and lively arts scene. The city’s iconic landmarks draw in numerous visitors yearly. Notable attractions include Jacksonville Landing, the Cummer Museum of Art and Gardens, and the Kingsley Plantation. Moreover, Jacksonville hosts a variety of festivals and events celebrating its diverse cultural heritage.
Jacksonville is a particularly affordable market for a city that has seen rapid growth in a relatively short period of time. According to census data, the city’s population has increased nearly 30% in the last 20 years. Despite a massive influx of residents, the median sale price of a home in Jacksonville was only $290,000 as of January 2024 (Redfin). Additionally, there is ample room for growth as the market rent in Jacksonville ($1,649) is notably lower than the national median of $2,000.
Pensacola
Pensacola, situated on Florida’s Gulf Coast, is a captivating fusion of historical allure and coastal magnificence. Renowned for its pristine beaches, vibrant maritime heritage, and historic architecture, Pensacola offers a distinct and captivating retreat for visitors. The city’s rich past comes to life through its array of museums, including the National Naval Aviation Museum and the Historic Pensacola Village. Downtown Pensacola’s historic district enchants with its charming boutiques, art galleries, and bustling eateries. Nature enthusiasts can delight in pursuits like fishing, boating, and exploring the stunning Gulf Islands National Seashore. Pensacola’s real estate market mirrors its exceptional and captivating essence, presenting an array of prospects for both residents and discerning investors.
Pensacola’s average home value of $254,217 as of July 2023 (Zillow) highlights the overall stability and desirability of the city’s real estate offerings.
One significant factor contributing to Pensacola’s surging real estate market is its tourism industry. The city’s thriving tourism sector has a direct positive impact on the real estate market. In 2023, there were 2.5 million visitors as reported by Visit Pensacola. Visitor spending totaled $1.3 billion. This influx of visitors creates a steady demand for short-term rentals. According to AirDNA, average monthly revenue is currently projected at roughly $2,175. Pensacola’s unique charm, coupled with its steadily growing number of visitors, position the city as an exciting and promising destination for those looking to invest in a market with a multifaceted appeal.
Fort Lauderdale
Fort Lauderdale, situated along Florida’s southeastern coast, is a bustling city with a population exceeding 180,000. Nestled in proximity to Miami, it’s often considered part of the broader Miami-Fort Lauderdale metropolitan area. The city boasts a diverse and vibrant economy, driven by industries such as maritime trade, tourism, aviation, and healthcare. Prominent employers include AutoNation and Holy Cross Health.
Fort Lauderdale’s advantageous coastal location and proximity to the Fort Lauderdale-Hollywood International Airport further amplify its allure for real estate investors. Serving as a key entry point for international travelers, the airport contributes to the demand for short-term accommodations and easy travel connections.
Nova Southeastern University in Fort Lauderdale adds to the city’s vibrancy and offers real estate investors a range of exciting prospects. Investors with a focus on student housing can tap into a thriving market by catering to the diverse and dynamic student population.
Fort Lauderdale presents a favorable opportunity for investors to take advantage of its stable rental market. As of February 2024, the average market rent in Fort Lauderdale stands at $2,882 per month, offering promising returns on investment, per Zillow. Moreover, the average home value is $515,518. Given the city’s economic opportunities and size, it is quite affordable. A business-friendly environment and cost-effectiveness attract investors eager to profit from the Fort Lauderdale’s real estate potential.
Gainesville
Gainesville, situated in northern Florida, is a thriving city with a population exceeding 135,000. The city features a diverse and evolving economy with significant contributions from sectors like education, healthcare, and technology. Prominent employers in Gainesville include the University of Florida, UF Health Shands Hospital, and Santa Fe College.
Gainesville boasts an array of cultural attractions that highlight its rich history and vibrant arts scene. Iconic landmarks such as the Florida Museum of Natural History, Hippodrome State Theatre, and the Harn Museum of Art, draw visitors from near and far. Moreover, Gainesville hosts various festivals and events celebrating its diverse cultural heritage and culinary delights.
Furthermore, Gainesville’s thriving student population presents lucrative investment opportunities for those specializing in student housing. With an enrollment of over 60,000 students, the University of Florida provides a consistent inflow of students in need of accommodation near campus. Investors can tap into a high-demand market that offers the potential for stable rental income. The University of Florida’s presence significantly contributes to the city’s rental market dynamics, making Gainesville an attractive destination for real estate investors aiming to cater to the needs of the student community.
Real estate investors in Gainesville have experienced favorable returns on their investments. According to data from Redfin, the median sales price in Gainesville has shown consistent appreciation over time. For instance, the median sales price in January 2021 was $213,500, and by February 2024, it had increased to $265,000, representing a notable 24% increase.
Gainesville, located in northern Florida, offers a promising real estate market for investors due to its expanding population, varied economy, and cultural highlights. The city’s thriving employment opportunities, close proximity to the University of Florida, and ongoing urban development enhance its allure. Whether interested in residential, commercial, or rental properties, Gainesville provides a range of prospects for investors seeking to leverage its dynamic real estate landscape.
Key West
Key West, situated in the enchanting Florida Keys, mesmerizes visitors with its breathtaking ocean vistas and abundant tropical allure. The island’s idyllic beaches and captivating sunsets envelop residents and tourists in a tranquil haven. Moreover, Key West provides a plethora of outdoor pursuits, from snorkeling and sailing to exploring its diverse marine life. Key West’s beachfront residences and vacation properties present an enticing opportunity for real estate investors in a booming short-term rental market.
Key West garners a strong market score as recognized by AirDNA. This signifies the city’s immense potential for real estate investors seeking lucrative opportunities. STR operators in Key West have the potential to generate a substantial average annual income of more than $143,000! The tradeoff is that the Key West market is quiet pricy. The median sale price for a home in January 2024 in this market was $1,200,000, up 58% from January 2021. Key West presents an enticing prospect for real estate investors seeking to capitalize on a thriving vacation rental market.
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Ready to invest in real estate in Florida? Easy Street Capital is top lender for rental loans in Florida, both hard money rehabs and long-term or short-term rental properties.
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