Investing in Multi Family properties in South Florida

[Troy Fowler]

One of the few sectors that is beginning to show opportunity is the multi family rental market. With more and more foreclosures and repossessions occurring and an increasing buyer base choosing to rent, the rental market in many areas of South Florida are gaining ground.

More and more South Florida residents are either choosing, or are forced to rent due to economic challenges, tight lending standards, or a continuing uncertainty about the valuations of local real estate. Rentals are providing a safe alternative for many residents either by choice or necessity.

For investors, buying power has increased. Cap rates are beginning to look very attractive, especially when compared to other rates of return in the se debt markets or risks in the securities markets.

Looking ahead, it has become clear that the housing market is going to take some time before it returns to a normal supply and demand cycle. This will undoubtedly result in an ongoing increased demand for quality rentals for years to come.