Real Estate Investing In Florida
A snowbird’s paradise, a retiree’s dream… Florida has appeal to many looking to vacation or purchase a forever home in a warmer climate. But what’s the climate like for real estate investors?
Whenever someone asks me if I have any tips for real estate investing in Florida, I tell them that it’s all about strategy. There are many seasoned investors, like myself, who know that there’s not one tip or trick that will guarantee success, especially when the market is always changing. The best way to have a successful real estate investing business is to do the necessary market research, develop a strategy that fits your goals, and be equipped with the tools and resources that can set you up for success.
Let’s explore how to do that.
Why Investing In Florida Is A Good Idea
Why Since the housing market crash of 2008, Florida has emerged as one of the hottest real estate markets in the US. Several cities in Florida—including Orlando, Tampa, and Jacksonville—have been listed as some of the best cities to buy a rental property for investment. But, Florida isn’t just a renter’s market. Many look to Florida to settle down because of its economy—no state tax, a growing job market, low cost of living.
As a real estate investor, following the trends within the Florida market would be in your best interest. If you’re strategic, you can grab up an investment property at the right time, before there’s even a chance for competition.
Location, Location, Location
Florida is ideal for real estate investors for many reasons but the main reason is its location. As a peninsula, surrounded by water, with beaches on every coast, Florida is ideal for those looking for vacation rentals or oases near the beach. As a real estate investor, you should look into investing in property that can meet the needs of those coming to the Sunshine State because of its climate and scenery. Take into account proximity to the beach and any other attractions—such as those in Orlando—when considering making an investment.
The location in which you choose to invest will go hand-in-hand with the type of strategy you should follow. You wouldn’t want to sell a property too soon if it’s located in an area ripe for vacation rentals—you might miss out on a ton of residual income.
Real Estate Investment Strategies For Florida
Before purchasing your first investment property in Florida, you need a solid investment strategy. Are you going to wholesale, fix and flip, or invest in rental properties for passive income? Florida presents opportunities for each. When deciding on a real estate investment strategy, you should take into account your business goals. What’s your exit plan? Do you want to be connected to a property as a landlord or would you rather make the initial investment and sell in hopes of a high ROI?
Once you’ve determined your real estate investment strategy, you’ll need to know exactly where to look for the best potential ROI.
HOW TO FIND INVESTMENT PROPERTY IN FLORIDA
Florida ranks among the highest states when it comes to foreclosure rates. For real estate investors, foreclosure means opportunity, but investing in one isn’t always easy. Oftentimes, foreclosures are sold by the bank at county auctions where there’s a ton of competition and you’re often buying blindly. There’s a chance you can get lucky at a foreclosure auction and come out on top but it’s not ideal to take such a risk. Instead, finding distressed homeowners before they reach foreclosure could save you a lot of time and money.