Considering investing in STR properties in Kissimmee, FL or Tampa from California!

[Kevin G.]

Hello everyone!

I am very interested in investing in STRs in Kissimmee, FL or in LTRs in Tampa. I currently live in California and am wondering if it is feasible to invest so far out of state. How much would I realistically need to be "boots on the ground" to pull this off? I know out-of-state investing gets asked about a lot, but I would love to learn from people who are actually doing it in Florida.

I am considering Florida due to its lower barrier of entry for someone like me from California. I had originally thought of investing in the SoCal and San Diego markets, but the overall cash needed is too high.

For STRs, I have thought about Kissimmee due to its strong demand and close proximity to Disney World. My plan is to find a 4-bedroom single-family home with a pool or in a community that has a pool, which needs some moderate renovations to build some instant equity. Then, I would design it to have a nice Disney theme to attract guests. The hard part is being in California to make this happen.

Another option for me was to invest in the strong market of Tampa, FL for an LTR. I don't know much about the market, but from what I've gathered so far, homes have appreciated drastically and continue to appreciate. I'd look at either SFH or multi-family units in this area to rent out.

Any advice would be greatly appreciated! Thank you.

[Patricia Steiner]

Before I share with you why Tampa is the market most chosen by successful investors, here's the downside of investing in Florida:  we have some of the highest property insurance premiums and property taxes in the nation.  We don't have a state income tax so the property tax is a killer.  Now for why Tampa:

"No market is doing better than Tampa Bay when it comes to net migration. The region rose from second to first in attracting new residents, with a population growth of nearly 2.9%, outpacing Austin, Phoenix and Jacksonville. And the migration rate of people between the ages of 25 and 34 jumped from 12th to 8th, “which means we are attracting workforce talent.”  (End)

Property appreciation and rental price increase both exceed 20% depending on the market within Tampa. We have a housing shortage that is years in the making and with over 200 people relocating here EACH DAY, demand far exceeds supply. STR is most profitable in communities that have something worth going to on a routine and regular basis. All things Disney brings a lot of competition and price slashing at times. The beaches are a mainstay for my clients but come with flood insurance - which isn't always cost prohibitive depending on the construction. Tampa has the major sports franchises, universities, world renowned medical communities like Moffitt Cancer - so it has the draw - as well as the proximity to the beaches, Orlando, more.

Managing properties remotely is commonplace and the traditional PM model is just costly and outdated.  

Florida offers a lot of distinct investment opportunities. Each market has its own tourist demographic as well so you may want to consider who would be your preferred guest/tenant.  My recommendation is if you decide to invest here, time is of the essence because our prices are only going in one direction.  

Hope this helps...