New to REI – Which Florida Rental Markets Make the Most Sense?

Question

Hey everyone,

I’m new to real estate investing and looking to learn from those with more experience in the Florida rental market. Right now, I’m considering Tampa, Orlando, Lakeland, and Miami as potential investment areas, but I’m not sure which markets make the most sense for rental properties.

I’m also investing from out of state, so if that makes a difference in terms of property management, tenant demand, or overall ease of investing, I’d love to hear your thoughts.

What are the pros and cons of these markets? Are there other Florida cities I should consider? My main goal is to find a solid rental market with good cash flow and long-term appreciation potential.

Any insights, personal experiences, or key factors I should consider when choosing a market would be really helpful. Thanks in advance for your time and wisdom!

Looking forward to learning from you all.

Nick Velez · Answer

@Ken Almira

The market you pick will really depend on your long term goals and the strategy you decide to implement. You will find that people are successful in every market you mentioned but depending on your cash position, a successful rental in one location or the other might not be as ideal for you.

Out of the markets you mentioned, I am extremely bullish on Tampa and surrounding areas. If you are considering looking in that location, I HIGHLY suggest you connect with a local expert like @Josh Green

Jorge Vazquez · Answer

Hi Ken,

After managing hundreds of properties and working with investors (many from out of state) for over 20 years, I’ve seen Tampa, Orlando, Lakeland, and Miami all work—but each has its own flavor. Tampa’s my personal favorite (yeah, I’m biased), with strong growth, great tenant demand, and a balance of cash flow and appreciation. Orlando’s solid too, but competition’s high, and some areas lean on tourism. Lakeland is like Tampa’s younger cousin—cheaper, growing fast, and great for cash flow. Miami? Beautiful, but pricey—better for long-term appreciation than cash flow. Since you’re investing from (out of state), property management is everything. Make sure you work with someone who’s also an investor—they’ll treat your place like their own. If you’re open to other spots, Jacksonville’s great for cash flow, and Cape Coral is booming, though hurricanes are a thing. Bottom line—Tampa or Lakeland if cash flow matters, Miami if you’re playing the long game, and Orlando’s somewhere in between. Let me know if you want to dive deeper—happy to help!

Alice Horn · Answer

Hi @Ken Almira - once you have narrowed your market, make sure you build a team from the start so you'll get the best education in that particular area. In addition to your realtor, you'll want to reach out to local PM's, decorators or contractors, etc. The education process starts at the very beginning. If you, as an investor don't fully understand what it takes to manage a specific type of home in that market, you'll make unwise purchasing decisions. We sometimes get buyers who have highly unrealistic expectations on performance, ease of self-managing and other aspects of owning the home. By having a second pair of eyes throughout the buying and selection process, you'll end up more realistic expectations. Also, you won't be rushing at closing to hire your ongoing partners.If you ever want to chat about the Orlando/Disney market from the property management perspective, feel free to reach out!

Aristotle Kumpis · Answer

Hey Ken. You should look at Ocala. It's about an hour north of Orlando. It's a good rental market for buy and hold. Its less expensive than Orlando too. I purchased a home here a few years ago, brand new. And it rented very fast. I live in California and invest in multiple states, if that matters. Also, the insurance was a lot less on a brand new home compared to an older one.

Katie Holmes · Answer

Hey Ken!

We scan and analyze thousands of properties a day for investors. While good deals these days can be hard to come by, we've definitely seen success across all those Florida cities you mentioned. In terms of other cities in Florida, I would also add Jacksonville to the mix! I also have some smaller Florida markets I can recommend as well as well as other markets out of state. Reach out if your interested! Best of luck!

Jorge Vazquez · Answer

When it comes to good cash flow, I’m usually aiming for something with strong upside potential—higher-end of the affordable market, in a gentrifying area, with a double-digit cap rate around 10%. As for how much I’d put down, it typically ranges from $0 to $100K, depending on what I’m bringing to the table or what my partners are contributing.

Obed Calixte · Answer

Jorge gave great quick overview of the different markets.

What do you consider good cash flow?

How much are you willing to put down when purchasing? What rental strategy are you looking to employ?

Todd Anderson · Answer

@Ken Almira

Welcome to REI and the BP community.  You will be able to find great and helpful information here.

I would recommend that you look at markets that are not as established and showing strong population and job growth.  The investors that I work with are looking for good entry price, steady cash flow and obvious appreciation.  We have been able to find this in some smaller secondary markets.  One I would recommend that you look at is Ocala.

I also talk with the OOS investors that I work with about looking at New construction.  With this type of property you will get lower insurance prices, lower maintenance and tenants like newer properties.  There are also some great incentives that some builders offer to move their properties.  Some like rate buydowns and free PM solve for the biggest problems in todays market.

Best of luck on your search, connect with me if you need more help.

Drew Sygit · Answer

@Ken Almira don't buy a Florida condo w/o checking that they've passed their engineering inspection and their reserves meet the new requirements.

New to REI – Which Florida Rental Markets Make the Most Sense?

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