South Florida Residential Investor Newbie

[David Aryeh]

Hi! 

My wife and I are making the move to Boca Raton in August and we are looking to break into the residential rental market in South Florida. Is anybody currently operating long term or/and short term rentals and can suggest good markets to look into buying in the surrounding areas?

Of course, any insight into the best way to research what markets are best is greatly appreciated!

Thank you all!

[Kyle Funnell]

@David Aryeh Welcome to South Florida David! I am in Palm Beach County. There are many great areas for investors in Palm Beach. 

A few things you will have to watch out for are Membership equity communities, HOPA's and HOA's. Membership equity communities are going to seem too good to be true and in this market it usually is. They come with big fees and start up cost (for example Boca West has $70,000 start up and about $15,000 just to be apart of the club) The next thing is HOPA (55+) communities. Some will allow you to rent and not have rental restrictions but this will just limit your tenant pool. Lastly, HOA's. HOA's and Condo Board have strict rules against renting. Some don't allow you at all and some only allow after so many years of living there. They can also limit the duration your lease is and how many times you can rent in a year. Not all have restrictions but it is good to mindful of that.

As far as short term or long term is would depend on what the community allows and what you are looking to do. I personally do long term rentals myself (less turnover and don't have to worry about furnishing the unit). 

Boca Raton is a very nice and has great schools so rent is going through the roof there right now. On the other end it is one of the most expensive areas in Florida to buy.