It is definitely one of the best ways to make money to invest in real estate. However, there are many circumstances that determine your investment’s success, and location is one of the most important. If you’ve been in the real estate investment business for only a few months, you must have heard that location, location, location are the three most important factors when buying a property.
Florida has been one of the top places in the US housing market for many years now for many good reasons to invest in real estate. First of all, Florida is the fourth most populous state in the US, and a lot of people translate into a lot of rental demand for real estate agencies miami (and landlords). In addition, according to the U.S. Census Bureau, Florida enjoys one of the highest population growth rates nationwide.The local economy is doing pretty well, and in recent years the unemployment rate has been falling. All of these factors outline the perfect recipe for long-term renting of a profitable rental property. Couple these with the many tourist attractions and the beautiful climate, and you will also end up with an ideal location to invest in short-term rentals (or holiday homes).
Another good news from top real estate companies in miami for real estate investors considering buying an investment property in the Sunshine State is the fact that Florida has witnessed a strong development of real estate. This has helped to maintain relatively reasonable average property prices in most miami real estate agencies in Florida.
As you know, the cap rate does not take into account the method of financing the investment property, unlike the cash on cash return. This is an important advantage when comparing investment returns in different housing markets as it keeps calculations simple and straightforward.The list of cities and towns with Florida’s highest cap rate for traditional (long-term) rentals and holiday homes follows. Mashvisor, an advanced real estate analytics tool that helps real estate investors find the most profitable long-term and short-term rental properties on the US housing market, has calculated the cap rate–as well as the average property price and the average rental income. Mashvisor takes its investment property data from MLS and other public sources; Rent Jungle, Hotpads, MLS, and Zillow’s traditional rental comps; and Airbnb’s short-term rental comps.
Best locations to invest
- W Palm Beach
- Riviera Beach
- Port Charlotte
- Old Town
- Vero Beach
- Punta Gorda
There are many opportunities to invest in rental properties in a state as large and flourishing as Florida. Nevertheless, you must choose the TOP locations as an aspiring real estate investor to secure success for your business. The best places to invest in rental properties are defined in many ways. Here we’re going to focus on the Florida locations with the highest investment return measured by the cap rate. If you’re a new real estate investor wondering what the cap rate is, this is a profitability metric that measures the ratio of net operating income (NOI) to the value of the property asset.
The cap rates above might not convince a seasoned real estate investor. Traditionally, all real estate experts have said that a good investment is a rental property that can bring an 8 percent or higher cap rate. While this used to be the case, real estate investment is now becoming very competitive as millions of U.S. real estate investors are trying to make money like this. Thus, any rental property with a cap rate of 3%-4% or more is worth considering in the current housing market. You should also bear in mind that these figures are averages at the city level, and you should be able to find properties with significantly higher returns on investment within each location.
Location is key to success with investment in real estate. So make sure you start your search for an investment property in Florida with these cities and towns. If you want to push your profitability even higher in these or other property markets, remember that buying cheap and renting expensive is the best way to do that. Check out available foreclosures, bank-owned properties, and short sales to find cheap real estate properties to invest in.