Rental Market in Melbourne, FL — Condo or SFH renting better?

[Mary Frangakis]

Hi, I’m a new out-of-state investor interested in investing and holding for cash flow in the Melbourne, FL area. I’d welcome any advice on what properties are renting best there — condos vs. single family homes, for example — and occupancy rates.  Thanks!

[Kim Meredith Hampton]

@Mary Frangakis, both are doing well, but I find that Single Family do much better in Brevard, especially given this pandemic. That $1200 to $1500 rental range are the sweet spot on homes. 

[Mary Frangakis]

@Kim Meredith Hampton — Thanks for your feedback.  I presume that price range on rent equals a 2- to 3-bedroom B+ type property?  I appreciate the advice.

[Kerry Baird]

@Mary Frangakis, my Melbourne home rents are $1595 for an older block 3/2 with pool, and a newer block 3/2 for $1500.  Beachside is higher.

[Jonathan Paz]

@Mary Frangakis I own a few different rentals (condos, townhomes, single families, and duplexes) in Brevard County and all are doing well. I think the best ROI is on condos, but they are the hardest to finance for non-owner occupants. Therefore, if you are trying to do cash out refinances, the single families/townhomes and duplexes work best. But if you are going cash purchase, and plan on owning debt free, condos work very well in Brevard County. I've got about 15 of them and loving the peace of mine, low maintenance, and appreciation both on values and rents I have seen. If you are interested in buying a turn key already rented and under professional management property in the area, send me a DM and I can give you a few options of some I would be willing to sell.

[Tchaka Owen]

Aloha @Jonathan Paz, given that you have a large number of properties (and particularly if you've bought some of them cash), what's your reason for not holding them in LLCs or land trusts?

[Jonathan Paz]

@Tchaka Owen Primarily it has been due to financing. I own only own 1 bundle of properties in an LLC with a commercial loan, and I'm not a big fan of commercial financing terms for residential real estate. I cover my risk with an umbrella insurance policy.

[Jose Landman]

@Mary Frangakis sfh!!!