Where to BRRRR in Florida

Question

Hi fellow Florida investors! I'm purchasing an AirBnB rental in the Kissimmee area near Disney using a second home loan, but my real goal is to do BRRRR investing in Florida (I live in New Hampshire). I'm trying to nail down the area, and I'm leaning towards Orlando or the "Space Coast" near the Melbourne area.

The challenge, of course, is that Florida's prices are steadily increasing with the rapid in-migration, which makes BRRRR investing their more of a challenge.

Curious what you all think of BRRRR investing in those two areas, or where in Florida might be better for that particular strategy?

Thanks so much for your thoughts! Even just quick gut reactions would be helpful!

Chris Witham · Answer

I used to live in New Hampshire. I now live in space coast area FL. If I could invest anywhere in FL and the distance wasn’t an issue it would be west coast as far north as pastor county and as far south as Naples. If I. Could pick only one area hands down it would be Cape Coral area for sure. Great upside potential for equity. Beautiful part of the state. Nearby the whole Fort Myers area is great.  properties actually cash flow but there is inventory to pick from.

Charlie Cameron · Answer

@Ryan Robinson that's interesting, I too just bought an AirBnB in the Disney area with a second home loan!

But I'm actually located in the Panhandle.  VERY strong short term rental market between Destin to Panama City Beach.  You can find BRRRRs here but you have to be very quick about it, the cat is definitely out of the bag.  I keep some searches on for myself and investors for distressed properties and man they go quick.  There's also a LOT of wholesale deals to be had, but again, have to move fast, put down non-refundable deposits, inspect before contract, AND close cash in 2 weeks.  There are still a lot of areas and properties that need improvement... and I suppose there always will be, here #hurricanes !

Kristin Kiddy · Answer

@Ryan Robinson I have been watching our MLS inventory numbers here in Daytona Beach go to unbelievable lows and still there are homes around here that need a flipper's touch (but they aren't for sale).  I'm watching flips (and pretty much anything that is remodeled) go under contract in a single day.

I too am shopping for an investment property in Kissimmee.  I'd love to hear more about where you purchased.

Stetson Miller · Answer

Hi @Ryan Robinson,

@Chris Witham hit the nail on the head describing the purchase potential for Cape Coral right now. As stated, the main purchase factor for that area right now is the huge appreciation potential. Positive cash flow can absolutely still be achieved, but the actual returns aren't going to be significant if that's the only aspect of the property you're considering. Once appreciation and equity gain are factored in, the returns start to look very promising for long term holds.

Feel free to send me a message or email with any additional questions about the area, and I would be happy to help!

Matt "Roar" Gardner · Answer

@Eric B. - As an investor and real estate agent in the area, I'm connected to almost all the wholesalers.  Most of the wholesale deals coming through are in the suburban areas of Panama City and Crestview.  There are VERY few deals that come through, which would be good short term rentals.  I'm happy to try to connect you however is best :)

Valentina Naumenko · Answer

HI Ryan, Orlando, Kissimmee, and Cocoa Beach is where my focus is. The biggest challenge is the purchasing price, just like you have mentioned. As long as you able to secure the right deal, the rest is easier. There are good vendors and great folks to rent. Even when the boarders are closed, we keep leasing the properties, but once we done with covid, this strategy will be even more attractive.

Chris Witham · Answer

@Ryan Robinson I am in a similar situation as you. My W2 job is strong and grants me a surplus of income and I have no intentions of leaving either but plan to invest in any property I can where I think there is long term upside potential. There are deals here on the space coast but competition is very tough. Cape Coral has seen and will likely continue to see epic growth. The difference on that coast is there is still empty space to build which has prevented flippable properties from being overvalued. There is money to be made in Brevard county but if I could pick anywhere in the state it would definitely be on the west coast. Lots of deals. Big expected appreciation. Cash flow being a bonus. There are even new construction duplexes selling well under $400k that cash flow. Empty lots on freshwater canals under 30k that have huge potential as population density increases. It’s a great safe clean neighborhood. Brevard has a lot of areas with high crime that I don’t like. Just my opinion. I do. Plan to invest locally but I think the other coast is the best in the state. There is even a turnkey provider that is a sponsor here that is doing new construction cash flowing houses out there.

Ryan Robinson · Answer

Hi @Mike Shulman! Good question. I sort of am in the sense that I picked up an undervalued property. However, we're going to be staying for part of the year in that home, so our goals were a little different for that property. However, now that that's done, I'm focusing on BRRRRing for future properties. My ideal would be the BRRRRnB strategy where I could rehab the property, refinance, and then use for short-term rentals. Please let me know if you have any opportunities - would love to work with you!

Mike Shulman · Answer

Why aren't you brrrrng your vacation home in orlando?

Blake A. Rivers · Answer

The best return on your investment would be either Delray beach or Pompano beach in south florida. Both areas have a lot of foreclosures of houses that are 3 bedrooms and 2 baths. They are generating on average 1800-2200 a month without renovations and the areas are appreciating in value. I have seen first hand how the rental market has gone up and is ripe for great profit margins.

Where to BRRRR in Florida

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