Rental Basics in Florida>Question Details

Peter Gudka, Home Buyer in Kissimmee, FL

Best rental returns in Florida

Asked by Peter Gudka, Kissimmee, FL Sun Jan 18, 2009

Hi there.I am a realtor in London,UK. I am looking to buy a 3 bed condo/house for rental investment near Orlando.I am also open to other cities too.Here's my dilema.Your state is so vast that it's very difficult to tell which area will provide the BEST rental returns and also the HIGHEST occupancy rates consistently.I visited Orlando recently and was bambozzled by the sheer volume of properties for sale(mainly villas)but was very confused which property could provide the BEST returns and occupancy levels.My budget is max $300,000.My ideal property would be a detached villa in a golfing community but i am very reluctant to pay high HOA fees.Also i will be moving to your state in the forseeable future and therefore this renatl investment may become my home residence too!!! I look forward to your advice.

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4
Peter,
The latest "intelligence" on this side of the pond is that the areas on the west coast of Florida (Naples and Ft. Myers, specifically) suffered the absolute worst hit in the down market, but that after a trough at 45% off highs, they may actually be bottoming out. That very well may signal a good buying opportunity. In this economy, I believe also that people are likely to rent before they commit to buying, so you may be in an ideal position. Given the possible thrashing the dollar may receive if we start printing more money over here, you might regain the sterling vs dollar advantage you had last year. Check out my web site for further observations about buying property in the southeastern U.S. And cheers (I have a sister who lives in London). Larry
1 vote Thank Flag Link Thu Jan 22, 2009
Hi Peter,
We have a great vacation rental market here. You can now get a great Gulf access property for under 300k. Think about the Cape Coral, Fort Myers area. I would be happy to provide you with addditional information on the area, if you would like.
Best of Luck,
Nancy

Nancy Doyle
http://www.nancydrealtor.net
1 vote Thank Flag Link Sun Jan 18, 2009
Peter,

We certainly understand your delema. The rental besiness has taken a bit of a hit, in particular the rental rates have dropped slightly because of the large number of frustrated sellers turning their property into rentals to minimize losses.

If your point of reference is based purely on the Orlando area our recommendation is to not commit to a location until you have done additional exploration to get a direct personal feel for other opportunities.

As you point out, Florida is a vast area filled with a wide range of options. Our feeling is the consistant return rentals in certain coastal locations because of the lure of water sports and activities. The southwest coast in particular currently offers great value, a warmer winter climate(ave. winter temps. 72 degrees), an excellent quality of life for its residents.

Our recommendation is that since you seem undecided, it would be beneficial to explore other options before committing. But don't overlook the Sarasota, Venice, Englewood area.

Good luck with your search.

Bill Eckler
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
1 vote Thank Flag Link Sun Jan 18, 2009
If you are considering taking up residence in South Florida, I would suggest the you contact your accountant and attorney to work out your ownership as a foreign person, or entity. Also, rentals do better near cities, or areas of employment concentration. Make sure to have a reserve for fix ups and probable vacancy periods.

Good school areas, attract families--you need to know who you want to rent to, families, singles, etc. Remember that you will be taking up residence there in the future.

All the best,

Maria Gross, CIPS, TRC
Illustrated Properties
Delray Beach, FL
mariagross@att.net
0 votes Thank Flag Link Fri Feb 22, 2013
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