Selling in NYC to buy in Orlando area?

Question

Hi Everyone,

I currently have a single family in NYC which i had planned to sell to buy a multifamily in NYC. With all the rent laws in NYC i have been considering taking the money and buying single family homes in Florida. My family currently owns 3 houses in the Southchase area. Based on your experience in the Florida market, do you think this is a smart move?

Thanks in advance.

Dave Foster · Answer

@Christian Orellana, the 1031 exchange will allow you to do that and still indefinitely defer any tax due on the sale.  Because 1031 is a federal statute and is practiced the same nationwide.

Here's my laundry list for why we moved our portfolio (and ourselves) from CT to FL years ago.

1. Cheaper price point

2. Cheaper property taxes

3. better tenant/landlord laws

4. No snow shovels

Samuel Boyd · Answer

@Christian Orellana I moved down from MD 9 years ago and I absolutely LOVE FL. FL is huge and not all of it is affordable or a "good" market to invest in. So, to narrow down your location It really depends on what you are looking to do. You can pretty easily determine average price of property in any given market (I can help you with this if you'd like) as well as projected rental income. The Orlando area is solid but I (and many others) prefer to be near the beaches. It's all up to what you are looking for. Happy to help advise on different areas as well :)

Doug Smith · Answer

The laws in NY and FL are night and day...so are the property values. If you sell a home in NY and do a 1031 exchange in FL, it might be a great move. We don't do much in the Orlando market, but we do a lot on the Tampa Bay market. Like NY, FL is diverse with respect to the real estate market. Homes in the Panhandle differ from Miami. Orlando is heavily dependent on tourism, so they will be a different market than somewhere like Fort Myers/Naples. A sleepy beach hamlet like Melbourne Beach near Kennedy Space Center is going to be different than the beach community of Key West. Just like NYC and Upstate NY will be different, you have to determine what makes the most sense for you. To directly answer your question, however, I am much higher on most of Florida than I am of the NY market. Florida was #1 in the country last year for net migration into the State while NY was neck-and-neck with CA as having the worst negative net migration. That's not saying NY is bad and FL is good. It's just saying demographic movement favors FL over NY right now.

Raymond J. Rodrigues · Answer

Hi @Christian Orellana, if you’re considering buying a few properties in the Tampa Bay Area, reach out to @Josh Green. He’s has helped quite a few of my clients/investors in the area successfully acquire real estate and can be of great value to you in your real estate journey.

Alex Olson · Answer

@Christian Orellana You can live anywhere in the us and own real estate investment anywhere in the US outside of where you live. Advantage of midwest investing is typically lower taxes, landlord friendly, appreciates well, lower insurance, and you don't get the big swings of the economy that impact your investment. Florida market is hot and hard to make deals pencil. Looking at other markets may be a better option for you.

Dave Foster · Answer

@Christian Orellana, over the years we've bought both SF, MF and commercial.  Ya gotta search for MF that makes sense these days.  Commercial caps are pretty low if you're not dealing in cash with a long horizon.  And the pressure of everyone moving here has me purchasing more SF now.

Christian Orellana · Answer

Did you buy single family or multifamily?

Christian Orellana · Answer

I would like to stay away from beach areas and flood zone areas. Insurance premiums are going to kill cash flow. I like central florida, i have some experience there. i have considered Tampa, Miami, Fort Lauderdale.

Christian Orellana · Answer

Thank you for this.

I'm not moving to FL any time soon. Based on what you said it seem like a good move. My next question would be should i invest in a multifamily or 5-6 single family homes in the Orlando area. I have also been looking into Tampa but would need to do more research as i am not familiar with the area. Miami i think its too expensive to see a decent return.

Selling in NYC to buy in Orlando area?

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