Panama City vs Daytona Beach vs Tampa vs Cape Coral

[Renzo Figueroa]

Hi all,

New out of state investor here!

I am looking to buy a turnkey property (SFH 3-bedroom) in Florida for cash flow. My max budget is $200k for a property (with 20% downpayment). I would appreciate it if you could give me some advice on which market would you prefer to invest: Panama City (not Panama City Beach), Daytona, Tampa or Cape Coral. I find that Tampa and Cape Coral are larger markets, but it seems that it is harder to find properties that cash flow. Happy to hear your advice!

Thanks,

[Chad Shultz]

Renzo,

Glad to see you here on BP.  I am a very active investor/realtor in the Greater Daytona area.  I ONLY work in real estate with investors, so if you need/want help, let me know.  There are many, many agents out there and 98% of them really have no idea about how investing actually works.  I put my investor customers' needs first, because I don't need to make a real estate paycheck to pay my bills.  With that said, to answer your question:  Cape Coral has been well over done.  For the past two years, or more, it has been about the hottest place in FL to invest.  Now that it is saturated, it is starting to fall off.  Lots of big investors went in, driving prices and now pricing is very high.  Many sellers are having to make huge price cuts to sell flips and/or new construction, so be careful there.

With your buying criteria, Daytona area is still a great market with strong numbers.  You should be able to find a decent property, if you can put in a little sweat equity.  However, finding a turn-key for $200k is not likely possible.  The places you will find for $200k won't make the rent rule, which should be a non-starter for you.  You will need patience and need to keep your eyes open.  I just recently sold a duplex property to an investor for $225k, which was bringing in $2800/mo, so you can find them occasionally.  Sorry, I don't know anything about Tampa or Panama City areas.