Since the housing market crash of 2008, Florida has rebounded to become one of the hottest real estate markets in the US. Prices have recovered significantly, surpassing pre-crash levels in most areas. The state’s warm weather, beautiful beaches, and growing job market continue to attract homebuyers.

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. With these factors, an investment property in Florida is positioned for a strong ROI in 2024.

The 5 Best Places to Buy Property in Florida

Once you’ve decided that the Sunshine State is your best bet for a real estate investment, it’s time to decide which neighborhood aligns with your goals. Read on to discover five of the top places to invest in Florida real estate.

1. Jacksonville

With the expansion of the coastal city, Jacksonville offers real estate investors several opportunities to flip older houses in this area.

The economy in Jacksonville has seen a recent surge in job growth, which has resulted in more people moving here to look for work. In turn, it’s had a strong impact on the demand for housing. And with higher demand, that means home sales prices are on the rise as well. Any market with climbing median home sales prices is great news when you’re flipping houses.

Nearby Cities: St. Augustine

2. Orlando

Orlando is considered one of the best places to buy rental property in Florida, and  it’s a great place for house flippers, too. Its economy is routinely stable—in part due to the constant draw of vacationers to the area—and unemployment is consistently low.

According to Oxford Economics’ study, Walt Disney World brought in $40 billion in 2022 alone. Real estate investors capitalize on both long-term and short-term vacation rentals in this highly competitive market. That competition has helped to drive the median home sales price up as compared to just a few years ago. If you buy a house at the right price and keep repair costs within budget, you can earn a pretty decent profit.

Nearby Cities: Lake Alfred, Melbourne, Ocala

Read about how you can choose an investment property near Disney World without overpaying.

3. Tampa Bay

Tampa Bay enjoys a thriving local community and tourist industry. Real estate investors can find success in this market. The variety of home styles from Tampa condominiums to St. Petersburg single-family homes is also a huge benefit of this area.

The economy in Tampa is strong, with an unemployment rate that is lower than the national average and the yearly growth of new jobs. These factors typically help to feed and maintain a strong demand for housing.

Nearby Cities: Clearwater, St. Petersburg, Lakeland

4. Sarasota

This southwestern getaway enjoys coastal living along the Gulf of Mexico. Several real estate investment opportunities from high-rise condominiums to cozy bungalows. It’s a popular destination for homebuyers to consider, with its white sand beaches and great weather.

Nearby Cities: Fort Myers, Cape Coral, Naples

5. Miami

A highly competitive market, Miami offers a variety of investment property opportunities in Florida. With this competition comes great opportunity for real estate investors. There’s a constant flow of new residents, which means the market continues to grow year-over-year.

Miami also has great potential for investors to earn passive income, as the rental market is typically strong. This location also has a lot of tax benefits for investors, which can reduce some of the costs of home ownership.

Nearby Cities: West Palm Beach, Fort Lauderdale, Hollywood

How To Flip Houses In Florida

When you’re flipping houses as a business, it’s important to consider the crucial factors that will impact your bottom line. Here are our tips for approaching house flipping in Florida:

1. Find the Right Property

Once you’ve settled on your niche, it’s time to figure out which type of property makes sense for you. The Orlando area has incredibly diverse options for investors, like units in high-rise apartment buildings, small apartment buildings, detached single family homes, townhouses, two-family homes, and more.

If you’re looking to get the most bang for your buck because you don’t have much capital or borrowing ability, small apartment buildings are typically appealing, though it’s rare to find them on the market.

If you prefer to focus on detached single-family homes, be aware that many neighborhoods have homeowners associations which may govern your ability to rent out your property. On the other hand, if you can find a few other investors to join you on a deal, buying a high rise and turning it into a bunch of rentals can yield higher margins

2. Determine the Valuation

Valuation is where your margin will be made or destroyed in the Orlando market. If you’re willing to overpay for a property, there’s no guarantee that you’ll be able to make up the difference by charging more for rent. At the same time, finding an undervalued gem is only possible if you have a finger on the pulse of how much a property is actually worth.

The rule of thumb in house-flipping is called the 70% rule. This rule is a guideline for home flippers to calculate the highest amount they should pay for a property. According to this rule, they should invest no more than 70% of the property’s projected after-repair value, subtracting the estimated renovation costs from this figure.

If you don’t have confidence in your valuation, it’s easy to get carried away if another buyer starts bidding beyond what a property is worth. And if you have a strong method for determining the value of a home, you’ll also have a great negotiating tool which might help you address various objections from counterparties and other stakeholders.

3. Make the Offer, Close the Deal, And Operate the Property

The purchasing process is similar in the other  regions of Florida. Working with a real estate franchise, like HomeVestors®, can make the process easier, especially for newer investors.

Once you have the deed in hand, it’s time to bring the unit up to your standards and find renters. Be ready to find contractors for repairs, maintenance people for regular upkeep, and perhaps cleaning staff if you plan to offer hotel-like amenities to your tenants.

To get people to rent your unit, listing it on any number of websites is a great place to start.. Choose the right listing service based on your preferred rental period. And don’t forget to calibrate your asking price based on the market segment you’re targeting, where your unit is located, and the level of amenities you offer.

4. Minimizing Your Risks

It’s true that there are a lot of details  when it comes to buying investment property in Florida. If you aren’t on top of every aspect of the process, starting with the property valuation, there’s a good chance that it’ll take a longer time to recoup the up-front costs of your investment

Working with a nationally known real estate franchise can expand your capabilities and help you better compete in the market. Becoming an independently owned and operated HomeVestors® franchise owner is a great way to get started.. Furthermore, franchise owners get hands-on mentorship from experienced real estate investors to assist them in locating  and closing  deals for  attractive properties.

Let HomeVestors(R) help you build a successful investment property portfolio in FloridaRequest more information today.