Investing in vacation rentals in Florida coast ?

[David C.]

As many of us are experiencing, prices of homes and condos nationwide are up quite a bit. I have been looking at consideration of costal vacation rentals in the Florida market. I have been centering on properties close to the beach (less than a 5 minute walk). With these being more desirable locations and prices being so high, each property that I look at, the numbers just don't support a secure cash flowing opportunity, unless vacancy is very low. With so many other vacation rentals also looking to capture business, it seems these properties essentially price themselves outside of a small business investor due to the risk of not cashflowing, and/or low CoC return. Have others had the same experience?

[Patricia Steiner]

My clients and I are acquiring high-end properties for this purpose and the vacancy - even during Covid - is extremely low. But it's not an "investment" play - it is truly running a business and is more like a Hotel/Motel endeavor than a rental.  Properties near the coasts will never provide a good return as anything other than vacation rentals because the prices are higher, flood insurance, and the age of lower priced properties.

Hope this helps...