Least seasonal STR market in FL?

Question

A couple of years ago I sold an LTR and 1031-exchanged it for an STR in the NC mountains. I have grown to really like the STR business! Now I want to sell a handful of LTRs and buy another STR, this time preferably in Florida. I like the Punta Gorda / Charlotte county area, but I'm open to other markets.

As far as STR’s in FL, seems like everything is somewhat seasonal. The panhandle is seasonal - busy in summer for beaches, slow in winter because it’s too cold. SW FL is seasonal the other way - busy in winter for northerners escaping cold, but slow in summer because it’s too hot.

Seems like there should be some place in FL that’s a happy medium. (I'm not really interested in the Orlando/Disney market.) Any other suggestions for less-seasonal Florida STR markets?

Thanks!

Josh Green · Answer

Hey Mike, I offer a white-glove solution for out-of-state investors for STRs in the Pinellas County area (Clearwater to St Pete).  I just ran a report on one of the bread n' butter properties I do for clients and this property has been running for 10 months (since last october).  Final figures: 76.8% occupancy and a gross income (not booking value) of over $120k across all channels.  Property was bought with today's rates and numbers and performing well.  A big reason for it is that we make our properties top-performers with professional experience in the acquisition of a property, to the professional design, and excellent management at discounted rate for clients (15%)!  We have it all available and customizable for you if you're more of a DIYer or wanting a full-service experience.

Now, a lot of people call and ask me what it takes to get a project like this done. The recommended cash budget is as low as $180k (for the DIYer) and $225k-$250k+ if you are 100% hands off. This is because I recommend at least 20% down and the homes tend to cost $500k-$650k for the lower-end budget. Prices less than that tend to require a lot more rehab budget or, are unlikely to have the proper mix of location, size, amenities, etc to have a strong ROI.

If you follow @robbuilt from BP you'll see he just posted on his IG story a link to my most recent STR I launched for a client!  That'll give you an idea of the finished product we do to get great returns.  If you're have a bigger budget, there are definitely great opportunities in what I call "Tier 1" properties.  This budget is higher, but the ROI is as well.  Those prices range from $800k-$1.5M depending on the specifics but the income increase is as much and the cost to own is slightly lower because insurance, maintenance, and utility costs do not go up linearly on these making a bigger margin for you.  If you fit this category or the "tier 2" category ($500k-$650k), feel free to DM me and we can see if it'd be a good fit to work together and discuss the process.

As a sneak peak, as I don't post or share numbers with non-signed clients, we tend to see 10-25% CoC returns depending on YOU: what you do or do not contribute and the finished product you choose to make ultimately. Someone self-managing and DIYing the design/furnishing has the potential to see the higher end of the return assuming they are a good operator; while someone who outsources the design/furnishing and management will of course see the lower end of the return as they aren't putting nearly the same amount of time into it. This is all with today's prices and rates too so no stat padding (and a good chunk of the cash used is just equity/downpayment on the home).

Dave Foster · Answer

@Mike McGee, Lots of great input here.  I'd also say don't overlook Anna Marie Island.  It's kind of the hot new kid on the block.  LIke a lot have said, Pinellas near the gulf beaches is stable and active as it gets.  I haven't seen much of a slowdown on Gulf Blvd this year.

Cape Coral used to be awesome year around (we had several strs there) with Euro tourists in the summer and US vacationers in the winter and spring.  I think that has leveled off with new inventory.  But anywhere where you can get Europeans coming over in July - September is an awesome plus.

Mya Toohey · Answer

Hello!!!!  I am in Pinellas County as well!  I specialize in STRs.  Pinellas County has one of the most restrictive STR rules in Florida.  You can find rental restrictions on the Pinellas County Board of Realtors site... https://pinellasrealtor.org/short-term-rentals/...It also has Hillsborough and Pasco County. Hope that helps!

Andrew Steffens · Answer

As mentioned above already The greater Tampa Bay area is great!

There is still some seasonal factors but there are enough draws to the area year round to keep the properties stable and renting well!

Let me know if you need any further help - I manage 65 or so doors and also broker for STR buyers.  Good luck!

Jason Wray · Answer

Mike,

I am in Pinellas County, Florida and our area by Seminole, Treasure Island, Madiera Beach, Saint Petersburg/St.Pete Beach, Tierra Verde are all great LTR and STR spots.  We have a healthy rental market but if you are closer to the beaches even better.  Seminole for Example has a lot of great traffic and tons of spots to eat, drink, socialize for adults and kids.

I know Cape Coral is picking up in terms of STR's with the complettion of the 7 Mile Island and more construction lately.  Venice is nice but its a little more seasonal for the most part.

Mike McGee · Answer

Thanks everyone. Lots to consider. Totally get the cost seg angle, but I'm just ready to get out of the LTR business, hence the 1031. I've had great appreciation on them and would like to hit the ground running on a Florida STR, rather than create one from scratch. Does anyone have an STR on the Gulf coast that's on the market, turn-key with a solid track record? Price point $600k - $900k.

Andrew Steffens · Answer

I ask myself that same question as I personally detest the extreme heat Jul-Sept (Jun usually isn't too bad).  Surprisingly July is our 2nd best month.  Kids are out of school and people still like the beach, even during the hottest months and even during Hurricane Season.  Tampa has a lot of draws, to name a few is Beach, Boating, Golf, Casino, Intl Airport/Biz Travel, Busch Gardens, NFL/NHL/MLB, Concerts/Festivals, and more.

I would say Sarasota is a submarket of Tampa but has its own attributes as well.  I do not have as much experience there with the laws, rates, and occupancy.

Dave Foster · Answer

@Todd Goedeke, Wish I could give you more but I don't have it.  It's anecdotal cause I don't care enough, but we have one STR on our property and are surrounded by STRs on all sides and there are folks in all every week including the heat of the summer.  A lot of people will take a str at the beach when they live in Orlando or inland Pinellas simply because it's 95 degrees out and if you can get a pool and a beach within 100 yards of your front door - why not!!!  I'm not seeing lessing of use - does that mean there's price reductions - IDK.  I just know demand is strong.

Todd Goedeke · Answer

@Dave Fosterwhen you say demand, quantify that in terms of how much of a price drop is there in ADR from demand in March vs July?

Todd Goedeke · Answer

@Andrew Steffens what draws vacationers to Tampa when it’s 90 degrees June-Sept.?

Is Sarasota an area that has higher occupancy for STVRs than Tampa? Or do you consider Sarasota part of Tampa area?

Least seasonal STR market in FL?

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