Out of state investor looking for STR/LTR in Florida

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Out of state investor looking for STR/LTR in Florida

Dmitriy Koval
Member since 2022 · 12 posts · 2 votes

Hi All,

I’m from WA, Seattle area  new investor looking to invest in outside of my state. Real estate has gone extremely high here.

I've been looking at a few markets in Florida, specifically Sarasota, Orlando, and Jacksonville. Not being familiar with those areas can be difficult to know what areas to avoid and how the rental/STR market is doing.

I’ve been to St. Pete’s and Clearwater and Sarasota this year, felt in love with those areas but problem with some of those would be STR regulations. I’m not limiting myself to just STR if there’s areas where the deals can still be found. With STR it would be nice to have in a nice area to stay and vacation (seriously considering moving to FL near the future)
Please suggest any other areas to consider in the hot market. The budget is between 400-500k.

I would love to connect with investors in those areas. 


Please suggest me any RE agents familiar with Florida market in these areas., lenders and insurance brokers. 

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Brent ReynoldsPro Member
Real Estate Agent · Clermont, FL · Member since 2021 · 31 posts · 35 votes
4y
Quote from @Dmitriy Koval:

Hi All,

I’m from WA, Seattle area  new investor looking to invest in outside of my state. Real estate has gone extremely high here.

I've been looking at a few markets in Florida, specifically Sarasota, Orlando, and Jacksonville. Not being familiar with those areas can be difficult to know what areas to avoid and how the rental/STR market is doing.

I’ve been to St. Pete’s and Clearwater and Sarasota this year, felt in love with those areas but problem with some of those would be STR regulations. I’m not limiting myself to just STR if there’s areas where the deals can still be found. With STR it would be nice to have in a nice area to stay and vacation (seriously considering moving to FL near the future)
Please suggest any other areas to consider in the hot market. The budget is between 400-500k.

I would love to connect with investors in those areas. 


Please suggest me any RE agents familiar with Florida market in these areas., lenders and insurance brokers. 


 Hi Dmitriy - 

STR in Central Florida (greater Orlando) is primary focused in the area that is 10-15 miles from Disney in Lake, Polk, and Osceola counties. Orlando, which is is Orange County, is not friendly to STR unless part of it is owner occupied.

The short story is that STR demand remains extremely strong there, as is the competition... but there is still money to be made. Generally, 4 bed homes or bigger is the best investment for returns.

Hope that gives you a flavor of our STR market.

[email protected]
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  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    4y

    I'm in Pinellas, so I can be a little biased, but my investments are all here.  

    Sarasota can be rough -- the county itself is 30 day minimum except on the barrier islands Siesta Key, Casey Key and Manasota Key.

    Orlando can be rough because there is so much competition -- you will need to stand head and shoulders above your competitors, which is hard when all the properties are the same purpose-built vacation homes. 

    There are plenty of areas in Pinellas that still make sense, although you do need to know where to look. You can make money in almost everywhere it's allowed, but there are definitely higher ROI areas!

    I've only sold one or two long term rentals in the last few years -- the rents will need to be unaffordable for the median income to support many of the purchase prices here -- the median salary is shooting up, but a lot of the new people are renting new, luxury apartments or executive homes or condos.

    1Reply
  • Brent ReynoldsPro Member
    Real Estate Agent · Clermont, FL · Member since 2021 · 31 posts · 35 votes
    4y
    Quote from @Dmitriy Koval:

    Hi All,

    I’m from WA, Seattle area  new investor looking to invest in outside of my state. Real estate has gone extremely high here.

    I've been looking at a few markets in Florida, specifically Sarasota, Orlando, and Jacksonville. Not being familiar with those areas can be difficult to know what areas to avoid and how the rental/STR market is doing.

    I’ve been to St. Pete’s and Clearwater and Sarasota this year, felt in love with those areas but problem with some of those would be STR regulations. I’m not limiting myself to just STR if there’s areas where the deals can still be found. With STR it would be nice to have in a nice area to stay and vacation (seriously considering moving to FL near the future)
    Please suggest any other areas to consider in the hot market. The budget is between 400-500k.

    I would love to connect with investors in those areas. 


    Please suggest me any RE agents familiar with Florida market in these areas., lenders and insurance brokers. 


     Hi Dmitriy - 

    STR in Central Florida (greater Orlando) is primary focused in the area that is 10-15 miles from Disney in Lake, Polk, and Osceola counties. Orlando, which is is Orange County, is not friendly to STR unless part of it is owner occupied.

    The short story is that STR demand remains extremely strong there, as is the competition... but there is still money to be made. Generally, 4 bed homes or bigger is the best investment for returns.

    Hope that gives you a flavor of our STR market.

    [email protected]
    2Reply
  • Zachary Bliss
    Realtor · Bradenton, FL (Bradenton) · Member since 2020 · 88 posts · 44 votes
    4y

    Hello Dmitriy,

    Sarasota doesn't have any rental restrictions. I am local Realtor in the area and have several clients who have STR properties near Siesta Key and Lido Key that do very well. If you would like we can connect and discuss the area a bit more and see if it work for your investment goals.

    0Reply
  • Nick Schlabach
    Realtor · Sarasota, FL · Member since 2015 · 51 posts · 11 votes
    4y
    Quote from @Dmitriy Koval:

    Hi All,

    I’m from WA, Seattle area  new investor looking to invest in outside of my state. Real estate has gone extremely high here.

    I've been looking at a few markets in Florida, specifically Sarasota, Orlando, and Jacksonville. Not being familiar with those areas can be difficult to know what areas to avoid and how the rental/STR market is doing.

    I’ve been to St. Pete’s and Clearwater and Sarasota this year, felt in love with those areas but problem with some of those would be STR regulations. I’m not limiting myself to just STR if there’s areas where the deals can still be found. With STR it would be nice to have in a nice area to stay and vacation (seriously considering moving to FL near the future)
    Please suggest any other areas to consider in the hot market. The budget is between 400-500k.

    I would love to connect with investors in those areas. 


    Please suggest me any RE agents familiar with Florida market in these areas., lenders and insurance brokers. 


    Here in Sarasota, STR are permitted within the city limits of Sarasota. Sarasota County has a minimum lease period of 1 month. Outside of the city limits your options for STR are limited to a small overlay district on Siesta Key and a few select buildings on Longboat Key.

    Manatee County to the north and Charlotte County to the south do not have any minimum lease restrictions. However, you still need to be aware of where the property is located within these areas. If within an incorporated area such as the City of Bradenton, those restrictions, if any, would need to be reviewed as well. 

    The real problem I see with Sarasota as it pertains to your business plan is the price point. Since it is such a hot area for STR I would suggest a minimum budget of 700k and even that probably won't get you a great property that is ready to rent. Charlotte County, on the other hand is seeing considerable growth throughout the Englewood/Manasota Key area and you should be able to find a nice single family home with a pool that would fit your budget.


    Let me know if I can be of any help.

    0Reply
  • Dmitriy Koval
    OP
    Member since 2022 · 12 posts · 2 votes
    4y

    Thanks seems like it could be too great of a risk for me with STR in such hot market. I'm leaning towards LTR. Considering getting a place as a second residence then eventually rent it out.
    Any specific areas or zip codes you would suggest looking into in South West FL where it might not be as hot market in 500-600k range?

    0Reply
  • Dmitriy Koval
    OP
    Member since 2022 · 12 posts · 2 votes
    4y
    Quote from @Brent Reynolds:
    Quote from @Dmitriy Koval:

    Hi All,

    I’m from WA, Seattle area  new investor looking to invest in outside of my state. Real estate has gone extremely high here.

    I've been looking at a few markets in Florida, specifically Sarasota, Orlando, and Jacksonville. Not being familiar with those areas can be difficult to know what areas to avoid and how the rental/STR market is doing.

    I’ve been to St. Pete’s and Clearwater and Sarasota this year, felt in love with those areas but problem with some of those would be STR regulations. I’m not limiting myself to just STR if there’s areas where the deals can still be found. With STR it would be nice to have in a nice area to stay and vacation (seriously considering moving to FL near the future)
    Please suggest any other areas to consider in the hot market. The budget is between 400-500k.

    I would love to connect with investors in those areas. 


    Please suggest me any RE agents familiar with Florida market in these areas., lenders and insurance brokers. 


     Hi Dmitriy - 

    STR in Central Florida (greater Orlando) is primary focused in the area that is 10-15 miles from Disney in Lake, Polk, and Osceola counties. Orlando, which is is Orange County, is not friendly to STR unless part of it is owner occupied.

    The short story is that STR demand remains extremely strong there, as is the competition... but there is still money to be made. Generally, 4 bed homes or bigger is the best investment for returns.

    Hope that gives you a flavor of our STR market.

    Thanks for the insights. How is the LTR like in the current market in Orlando? I’m leaning towards LTR as it’s difficult finding something with no regulations. 
    0Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
    4y

    @Dmitriy Koval I am in the Orlando area and can give specific advice on the STR situation. We have quite a few communities that are specifically zoned for short term and you don't have to worry about regulations or HOA changing the rules. Happy to provide a list or dive deeper if that is the route you want to go. Your budget will be tough to get much more than a townhome right now (our prices are pacing the rest of the country too), but keep in mind, these come fully furnished and turn key, generally with all future bookings in place which would/should cover your expenses or more while you get up and running.

    For long term, really anywhere within Central Florida is hard to go wrong, with your budget you could even get new construction in good areas. Depending on who your ideal tenant is, there may be areas that wouldn't suit your criteria, but our rents are sky high with no end in sight and no inventory to slow that down. Again, I could suggest some options based on what direction you decide to go.

    Hope this helps. Good luck

    0Reply
  • Marshall Leipprandt
    Real Estate Agent · Miramar Beach, FL · Member since 2016 · 285 posts · 245 votes
    4y

    @Dmitriy Koval Have you looked into northwest Florida? Areas like Destin, Miramar Beach, and Panama City Beach are generally STR friendly and the area has strong STR demand. Similar to Jacksonville, this area is much more accessible via a day drive for states like MS, TN, GA, AL, and AR and in my opinion, the beaches are far better than the Atlantic side of Florida. I own and manage two STRs in NW Florida and they've performed pretty well thus far.

    2Reply
  • Minna Reid
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    4y
    Quote from @Marshall Leipprandt:

    @Dmitriy Koval Have you looked into northwest Florida? Areas like Destin, Miramar Beach, and Panama City Beach are generally STR friendly and the area has strong STR demand. Similar to Jacksonville, this area is much more accessible via a day drive for states like MS, TN, GA, AL, and AR and in my opinion, the beaches are far better than the Atlantic side of Florida. I own and manage two STRs in NW Florida and they've performed pretty well thus far.

    I'd agree with this. North Florida - esp Panhandle and Jacksonville - still have "better" pricing and are growing very quickly. I work Jacksonville and demand is endless. New construction everywhere. Every older neighborhood is turning over. Jacksonville is one of the hottest market in the country right now from what I understand. While affordability is better, Jacksonville is more south Georgia than Florida really. Not as "tropical" as most non locals expect Florida to be, and we have a milder climate. That may or may not be what you're looking for. I do agree the Gulf side has prettier clearer turquoise water, and I visit frequently. However, the Atlantic side has a much more accessible coastline, more wave activity and our water does not get disgustingly bath water hot end of summer. Also no red tide here, which was the deciding factor for me anyway - but to each their own.
    0Reply
  • Andres Rodriguez
    Wholesaler · Jacksonville, FL · Member since 2019 · 74 posts · 42 votes
    4y

    I'm a little biased just because I live and invest in Jacksonville, but I am a huge fan of the beaches on the Gulf coast.

    With that being said, I do not own any STR rentals just yet, but the more networking I do, I'm definitely seeing the potential. I used to think that STRs were only viable by the beach or downtown. JAX has really opened my eyes to the possibility of having an STR almost anywhere. While I don't advocate investing in warzones, you would be surprised where AirBnBs are located here. But a good rule of thumb is that it has to work as a LTR first just in case regulations change in the future.

    In my opinion, AirBnBs are doing great in Jacksonville because of the availability of quality hotels is very limited unless you are staying by the beach. You have a large number of people visiting family and friends who are staying at the Mayo Clinic. You also have at least two large military installations in Jacksonville where service members and their families with pets would love to rather stay in a nice STR than a crappy Days Inn when they are between duty stations. I went through it several times when I was in the Army. Oh, and Uncle Sam picks up the tab. 

    Not to mention the traveling nurses that work in the many hospitals here or the influx of people in general that are moving to Jacksonville while their permament home is ready, and they do not want to rent an appartment or stay in a random hotel for three months.

    1Reply
  • Dmitriy Koval
    OP
    Member since 2022 · 12 posts · 2 votes
    4y
    Quote from @Andres Rodriguez:

    I'm a little biased just because I live and invest in Jacksonville, but I am a huge fan of the beaches on the Gulf coast.

    With that being said, I do not own any STR rentals just yet, but the more networking I do, I'm definitely seeing the potential. I used to think that STRs were only viable by the beach or downtown. JAX has really opened my eyes to the possibility of having an STR almost anywhere. While I don't advocate investing in warzones, you would be surprised where AirBnBs are located here. But a good rule of thumb is that it has to work as a LTR first just in case regulations change in the future.

    In my opinion, AirBnBs are doing great in Jacksonville because of the availability of quality hotels is very limited unless you are staying by the beach. You have a large number of people visiting family and friends who are staying at the Mayo Clinic. You also have at least two large military installations in Jacksonville where service members and their families with pets would love to rather stay in a nice STR than a crappy Days Inn when they are between duty stations. I went through it several times when I was in the Army. Oh, and Uncle Sam picks up the tab. 

    Not to mention the traveling nurses that work in the many hospitals here or the influx of people in general that are moving to Jacksonville while their permament home is ready, and they do not want to rent an appartment or stay in a random hotel for three months.


    I am considering Jacksonville but would want to avoid war zones at all costs. Any specific zip codes that are worth looking into? Any other areas near Jacksonville near the beach that’s worth considering. I would likely consider LTR, plus South FL can squeeze my budget too much. 
    Any referrals for the realtors from Jacksonville area who work with investors and potentially investors themselves?

    0Reply
  • Minna Reid
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    4y

    Lot of great info on this thread. There are over 30 zip codes in Jacksonville, and variation even within zip codes, so you will not be able to break the are down completely by zip codes. That budget will get you onto the beaches, or very close, but the problem with the budget is that cash flow will be very difficult for an LTR for an SFH at that price point. If the main goal is investment/cash flow - you may want to look for a multi (You wont find one near the beach at that budget), or go with a lesser home for less $$ (also further from the beach, except you might get lucky in northern Atlantic Beach/Mayport). If your personal enjoyment of the property is the main goal, and cash flow is not, you can certainly find a very nice home near the beach under 500k. I am a Jacksonville real estate broker, and I live on the beach- I would consider the Beaches/Intracoastal the area I am the most familiar with. If you need assistance or references to vendors, feel free to reach out.

    0Reply
  • Andres Rodriguez
    Wholesaler · Jacksonville, FL · Member since 2019 · 74 posts · 42 votes
    4y

    @Dmitriy Koval
    Shoot me a DM with your email.

    0Reply
  • Dmitriy Koval
    OP
    Member since 2022 · 12 posts · 2 votes
    4y
    Quote from @Minna Reid:

    Lot of great info on this thread. There are over 30 zip codes in Jacksonville, and variation even within zip codes, so you will not be able to break the are down completely by zip codes. That budget will get you onto the beaches, or very close, but the problem with the budget is that cash flow will be very difficult for an LTR for an SFH at that price point. If the main goal is investment/cash flow - you may want to look for a multi (You wont find one near the beach at that budget), or go with a lesser home for less $$ (also further from the beach, except you might get lucky in northern Atlantic Beach/Mayport). If your personal enjoyment of the property is the main goal, and cash flow is not, you can certainly find a very nice home near the beach under 500k. I am a Jacksonville real estate broker, and I live on the beach- I would consider the Beaches/Intracoastal the area I am the most familiar with. If you need assistance or references to vendors, feel free to reach out.

    Thanks for your response will definitely be connecting once  I settle in on the area in FL. I’m eventually considering moving to Florida. Not too worried about being able to cash flow either, more or less being able to cover the mortgage. I’m more inclined with the property appreciation in the area. I wouldn’t mind trying to live at least half the year myself as my job allows me to work from anywhere. Perhaps STR might be an option if the property would work out to also be LTR.
    I haven’t been to Jacksonville myself, I’ve only been to the South FL. Might consider making a trip this year prior to pulling a trigger.
    1Reply
  • Frank Zhang
    Real Estate Agent · Daytona Beach, FL · Member since 2019 · 37 posts · 15 votes
    4y

    The Daytona Beach is a great area to invest in. It is one of the most affordable beach cities in the country and the area is growing rapidly with the support of government and large investors. Feel free to reach out to learn more. I love connecting with people interested in the area

    0Reply
  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    4y
    Quote from @Minna Reid:
    Quote from @Marshall Leipprandt:

    @Dmitriy Koval Have you looked into northwest Florida? Areas like Destin, Miramar Beach, and Panama City Beach are generally STR friendly and the area has strong STR demand. Similar to Jacksonville, this area is much more accessible via a day drive for states like MS, TN, GA, AL, and AR and in my opinion, the beaches are far better than the Atlantic side of Florida. I own and manage two STRs in NW Florida and they've performed pretty well thus far.

    I'd agree with this. North Florida - esp Panhandle and Jacksonville - still have "better" pricing and are growing very quickly. I work Jacksonville and demand is endless. New construction everywhere. Every older neighborhood is turning over. Jacksonville is one of the hottest market in the country right now from what I understand. While affordability is better, Jacksonville is more south Georgia than Florida really. Not as "tropical" as most non locals expect Florida to be, and we have a milder climate. That may or may not be what you're looking for. I do agree the Gulf side has prettier clearer turquoise water, and I visit frequently. However, the Atlantic side has a much more accessible coastline, more wave activity and our water does not get disgustingly bath water hot end of summer. Also no red tide here, which was the deciding factor for me anyway - but to each their own.

     Lol -- all this is spot-on!

    The ROI seems great up there, although it's definitely the "South" and not "tropical."

    Although, the locals here kind of demand the bath-water!  Anything below 80° is too cold!

    0Reply
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