In this article, I will share ten proven steps for property investment in Florida and also the ten best areas where you can make the most money in the City, according to some researchers.
But before you start getting excited, you need to know why real estate investing in Florida is becoming so attractive that every citizen in the area or from other states is trying to buy properties there. What’s happening there?
Why Property Investment in Florida is So Attractive
Internal migration populations in the US are showing interest in Florida as a possible final destination. More and more people are leaving the big and crowded Cities for a place where the cost of living and homes is fair.
The ICG report indicates that in 2019, more than 950 people moved to Florida daily from other states. The climate is warm, and City is on the coastline. The demand for new homes in the area has increased by more than 260% compared to last year.
All these factors say that Florida’s real estate market is going to boom. But the question is how can you take part in it?
Read, also: How to invest in Denver real estate
Table of Contents
How Real Estate Investing in Florida Works
If you want to invest in the Florida market, you need to know something before putting all your hard-earned money there. Here are the five steps that you can use for a better profit.
1. Average Land Prices Are Low Here
Land plots in Florida with an area of about ten acres will cost about $15,000 compared to New York, where the same plot will cost at least $310,000. A huge difference in land prices. You can buy more land in Florida than in any other state in the US.
In Florida, developing a house with all the necessary utilities and amenities will cost about $250,000, which is lower than in New York and other big states. It’s because of the land price.
2. It Takes Less Money to Develop A Property
The construction cost is also affected by the minimum wage, which is $10 an hour, seasonality, and other market trends. But overall construction is low than in other states.
3. Florida Offers Lower Property Taxes
There is no state income tax for individuals in Florida for American residents, as well as no interest being charged salaries. It is a friendly tax climate area that makes the region attractive for permanent residents.
4. Better Investment Opportunity
It’s no brainer to understand that more and more investment opportunities are appearing in the city as the demand is increasing. The local market is expanding and creating more jobs and startups in the area.
- In real estate, where the jobs are, people are, you know it.
In the future, more and more people will get attracted to the city. The real estate market trend is attractive.
5. The Market Trend is Positive
The market trend is super positive in Florida. It’s on the rise. The Occupancy rate of homes raising, and the vacancy are falling. More new homes are on the way. So, the average home price remains under control. So I think the real estate trend is positive.
Ten Best Areas for Real Estate Investing in Florida
Here are the best places for property investment in Florida. Choose according to your nearby areas.
| City | Average Price | Price per Sq.ft | Price to Rent | Monthly Rental | Cash on Cash |
|---|---|---|---|---|---|
| Wellington | $129,030 | $575 | 27% | $3,945 | 3.00% |
| Port St. Lucie | $427,170 | $215 | 18% | $1,945 | 3.00% |
| Palm Bay | $311,150 | $180 | 16% | $1,590 | 3.70% |
| Jensen Beach | $671,680 | $405 | 20% | $2,760 | 4.04% |
| Palm Springs | $205,261 | $196 | 12% | $1,415 | 4.45% |
| Margate | $225,050 | $185 | 12% | $1,580 | 4.40% |
| Royal Palm Beach | $225,050 | $185 | 12% | $1,580 | 4.40% |
| Coconut Creek | $295,230 | $208 | 13% | $1,850 | 3.75% |
| Port Charlotte | $454,180 | $240 | 20% | $1,950 | 3.70% |
| St. Johns | $438,030 | $230 | 17% | $2,150 | 3.00% |
Invest in any of these areas if you want to make good money from your property investments.
How to Make More Money from Property Investment in Florida
Now five more steps to make more money by making property investment in Florida, USA.
1. Convert Large Apartments into Small Apartments
Divide a large apartment into small separate quarters. For example, you rent an apartment for $900, which has three rooms. But if you divide them into three bedrooms and take $400 from each tenant, you will receive $1200. That is what the new trend can bring for you.
2. More Development Opportunities
Property redevelopment not only helps to improve the living conditions of your average tenants, but also the value of the real estate by up to 50%. If there is new demand, you can develop more units in the open spaces that you own and sell or rent those units to make money. The market demand will support you.
3. New and Hidden House Flipping Options
As the demand for new homes is increasing, more and more property construction will happen, and some opportunities for you in that market. If you research the area well, you will find some properties for fixing and flipping. Properties that are in bad condition and need rehab soon.
If you don’t mind living in a construction zone, you can buy a fixer-upper to move in, make repairs and improvements, and then sell it for the best price. But, it requires a huge sum of money for the down payment and repairs. That is why know first if you can manage all that.
4. Building Equity is Easy With Extra Investment
If you renovate an apartment, it will increase the cost of the apartment by two times. By improving that, you are investing the money to build equity in the property.
For example, an apartment in poor condition costs $80,000, but as you make repairs, you can raise the price up to $130,000 and make a good profit of $30,000 if your expense is $20,000.
5. Modern Living Homes for More Rental Income
Today, more and more people are looking for European-like homes with wider windows, door openings, and high-quality tiles on the floor. With that, the construction cost will increase, and the value of your house will also double
Conclusion
So there are huge opportunities for property investment in Florida in some specified cities. The question is, what will you choose? Let me know in the comments. Thanks for reading this article. See you soon.
