Home to large metropolises such as Jacksonville, Fort Lauderdale, Miami, and Tampa, the Sunshine State is a great investment area. Florida is a diverse state with beaches, theme parks, universities, and a large retirement community. In fact, 40.3% of the Florida population is over 50, 5% more than the national average.
Florida Real Estate Market Overview
Despite the high demand for short-term and long-term residential units, Florida actually has low average home values, making it a profitable location for real estate investment. The median sale price is currently about $404,100, which is up 3% over the last year; this is slightly below the national average of $407,100. Compare Florida real estate to California's median sale price of $843,340, and you can see why so many investors consider this one of the best places to purchase investment properties.
Florida's a relatively fast-moving market, with homes going to pending in 22 days. This is part of the reason that investors rely on specialized investment property loans, which have a much faster closing process than conventional loans.
Real Estate Investments in Florida
An investor interested in the Florida housing market has several different types of investment properties to choose from, which are separated into two categories: short-term rentals, such as vacation rentals, and long-term rentals, such as single-family homes and multifamily homes. Thankfully, this state is great for both of them, as we'll explore now.
Visio Lending can help you with a loan for a variety of properties, such as vacation rentals or 1-4 unit single-family rental properties, including condos and townhomes.
We have a range of investment property loan options for rent-ready real estate throughout Florida to fit your timeline and needs. Our loan programs and services are tailored to investors with
With so many excellent options across the state, it can be difficult to pick which city is right for your investment property. While the entire Florida market is excellent, some places are better for investors looking for long-term rental property, while others are perfect for vacation investments.
These are the best cities for long-term investment property as they all satisfy the key metrics — strong rental growth, increasing population, and excellent job markets.
Orlando is very well-priced for first-time investors, with the median listing home price being $399,000, up 1% over the last year. Average rental income is $1,940. Orlando is one of the most competitive rental markets in the nation, which is part of the reason that over 72% of tenants renew their leases.
Located on Tampa Bay along Florida's Gulf Coast, a home in Tampa is a real steal at just $391,344. Rental income is comparable to Orlando at $1,920 a month, making it well-producing but affordable. The city is listed as the 24th best place to live in the country, mostly due to the strong job market.
Jacksonville is a more low-key city, with home values of $293,086.Prices are down 2.7% year-over-year, making this a great time to buy. The average rent is $1,537, but vacancy rates are lower than Orlando or Tampa at just 6.6%.
Airbnb properties and vacation homes promise an excellent cash flow in Florida, and investors should take a particularly close look at properties in these particular areas, known for being vacation hotspots.
Kissimmee is just south of Orlando, making it a very popular place to stay for those visiting Walt Disney or SeaWorld. Properties cost just $373,138 but can make up to $24,900 per year, with a great occupancy rate of 39%. You can charge an average of $238 a night.
Exotic Key West is in the Florida Keys, making it a great place to get away from it all. Property is some of the most expensive in the state at $1,074,327, but vacation rents are enormous, too. With a Key West short-term investment property, you can expect an annual revenue of $53,600 with a nightly rate of $394 and occupancy rates hitting 44%.
On the Gulf Coast, Clearwater Beach is beloved by visitors interested in a relaxing spa day. Real estate is pricey here, too, with average prices of $841,198, but it also has a very high annual revenue of $31,600 and a stunning occupancy rate of 47%. The average nightly payment is $235.
Headquartered in Austin, Texas, Visio Lending has over a decade of experience in real estate and finance. We’ve originated over 1,600 loans in Florida totaling over $411M.
Visio's loans were designed with investors in mind, offering full 30-year terms and LTVs up to 80% on purchases and rate and term refinances, and LTVs up to 75% on cash-out refinances.
Our loan process is fast, simple, and dependable with no DTI calculations or personal financial statements.