Where in Florida should I be looking for commercial apartments???

Question

Newbie that is looking to follow Grant Cardone's footsteps. He says to start buying where you know. In my case, I live in Miami which, even Grant Cardone himself has said is too expensive to buy now given all the new construction and foreign money investing in our local real estate (and Grant lives here).

That being said, I would like to explore other parts of Florida that are within at least a 4-5 hr drive from Miami. Can you please share what you know about Florida 5+ apartement investments. I want to start contacting commercial real estate brokers to find me a deal but I would like to narrow down the areas first.

Thanking everyone in advance for your input.

Justin Cabral · Answer

Hey Nick,

Thanks for the invite. I heard Grant talking about that purchase in Boca and how he may have overpaid for it. I get his philosophy and he really likes the south florida market but I would assume that he will test the waters with that investment before picking anything else up down here.

I went to the last meetup you organized and it was pretty enlightening. I met some really knowledgeable people in specific niches (commercial and high end construction specifically) and very open to letting me pick their brain.

I'm at that stage where I would like to have narrowed down what cities in Florida I want to invest in and how to find multifamily in those places so that I can begin building a broker funnel and analyze deals they find.

Stephen David Smith Jr. · Answer

Good Evening @Magesh R.,

I am a Realtor in the Sarasota area and do work as far North as Tampa. I would be happy to get you in touch with the right people and help you out in any way I can. Please feel free to PM me if you would like to speak further.

Magesh R. · Answer

I am also looking for apartment buildings for investment in Tampa/St. Pete and Sarasota areas. Would like to connect with investors, brokers, property managers in those areas. Please reach out.

Kurt Dillon · Answer

I have commercial and residential real estate all over central Florida. If you would like to know what I have please contact me.

-Kurt

Kathy Stewart · Answer

I live in Ca. and have made a good connection in Jacksonville, which is a good market at this time.  Networking and discussing our individual objectives and how we might create mutual value produced our relationship. So, while I am more familiar with the Texas market, I am comfortable to now consider Jacksonville and my connection may now have an interest in Texas.

Josh D. · Answer

Hi @Justin Cabral, you are going to have a very difficult time finding an apartment complex or building, even a small one that you can purchase at a 10% cap rate.  I think more realistically you'd be able to find something around Tampa that provides 6-7% NOI on your purchase price for a smaller class C building in a decent area.  The investment market for apartments is that hot right now.  You might be better off buying a duplex or quad, even then its tough to find a true 10% cap in a decent area.

Josh

Gregory Emmer · Answer

Hi @Justin Cabral I agree with @Patrick Noel that Tampa is growing market.  I remember reading that there are more searches on google about real estate investing in Tampa than Orlando and South Florida.  So there's definitely an opportunity on the West Coast to be looking for rental properties.  The only piece of advice that I would give as you look to invest is make sure each rental property is stand-alone.  What I mean by that is make sure that the net rents can support your property taxes, insurance, misc maintenance, and even a small vacancy allowance. The worst scenario you'd want to be in is having to pay out of pocket or take profit from another property to overcompensate for losses on a commercial complex.

Patrick Noel · Answer

Hey @Justin Cabral All the best on finding a deal! Right now Tampa is looking like a really good area as it is becoming somewhat of a startup hub , so I imagine, good opportunities and Port St. Lucie is ranked 9th regarding job growth.

Justin Cabral · Answer

Hi Eric,

Based on the podcasts I have been listening to I think it is clear to me that I should not be going into a rental property expecting any appreciation except for the equity I will earn as I pay off the investment over time. If it goes up in value, that is just gravy.

Cash flow is what I am most interested in. Parking my savings in down payments for rental properties that give me a high enough cap rate to afford a property manager and still net a 10%++ NOI while the property is paying itself off long-term is what I am looking to do. I am about to turn 34 and I feel like I am already late to the game if I want to really build wealth and retire from the corporate world at a decent age.

How difficult is it to find a deal like that in Central Florida? Anyone you could refer me to hook up with to either find or partner on deals?

Jeff Konig · Answer

Hey Justin-  I have started to learn about the FL markets over the last 1.5 years.  I've been a hard money lender in Sarasota on a rehab project but have also been working with two partners out of OH who are looking at larger apartment buildings in Jacksonville as well as in Colorado.  If anyone has any insight on which markets we should possibly stay away from in FL, please let me know.