Florida long or short term investment?

Question

Hi all! I am looking to invest in a waterview condo in Florida with a partner. We wanted to do Airbnb but are figuring out that Airbnb is allowed in only a handful of condos in south Florida. I was hoping investor pros could help us shine some light on weather we should keep searching for an Airbnb condo or forget that all together and buy a unit for long term rental? First time investor here.

Evelina Khaimova · Answer

@Duriel Taylor Yes I am referring to hurricane season. How do you all handle that time of the year? And yes you are right - I would prefer to buy a property by the water that I can use when its not rented out. But from research it seems like the properties that allow short term rentals have steep HOA fees. Am I wasting my time looking for those?

Duriel Taylor · Answer

@Evelina Khaimova

I’m not sure what you mean by bad weather. In Fl, we have the most consistent weather (70 degrees plus, 90% of the year) than any other state. The only odd time of the year is hurricane season which is only seasonal and we get weeks in advance knowledge. We also have great tax benefits. Our housing market is one of the highest appreciation states in the country. In terms of your statement, “Plus I want ocean view or water bay view”, do you want an investment property to rent out or a home for you? At your earliest give me your thoughts.

Evelina Khaimova · Answer

@Duriel Taylor

I’m a little hesitant to buy a house in FL bc of frequent bad weather. Am I wrong?

Plus I want ocean view or water bay view

Duriel Taylor · Answer

@Evelina Khaimova

I would suggest you ask the seller and or the HOA if they allow air bnb. Some HOAs don’t allow daily rental because they perceive this business model creates “transit” environment for its residents. In addition, the HOA fees are apart of your monthly expenses so make sure that is included in your monthly fixed expenses. Most investors I know, no longer buy condos. The NET after all expenses, with HOA fees, and debt service(if you have any), is not too attractive. I hope that helped you if not I would be honored to discuss in further detail. All the best.

Ken Naim · Answer

@Evelina Khaimova you can look but only buy one that makes sense as a long term rental as the condo board can change the short term rental policy at anytime. You don't want to get stuck in a situation where you can't cashflow on it if the board causes issues.