SE Florida Vs SW FL Cash Flow

[Levi Gold]

Good Morning Everyone,

I recently moved to Miami  and looking to invest (syndicate). I'm not asset specific but I would like to be geographically focused. 

I'm trying to understand the differences in the market between the East and West coast of Florida in terms of competitiveness, cash flow, and opportunities.

PS: East Coast for me would be anywhere south of Brevard County, and Gulf coast would be anywhere South of Tampa (Tampa included).

I appreciate any feedback and help!

Thanks! 

[Jason Brown]

Welcome to MIA REI.

As a Miami investor I can give you my take on the SE FL market.

We are seeing a lot of growth down here especially with all the news surrounding all the tech companies trying to grab up space in the downtown financial districts (think Microsoft in Brickell). 

While this is great it definitely correlates to the extreme price increases you will see in both the single family and multifamily housing markets. Given that you will most likely have a much harder time finding stronger cashflow investments here vs the SW.

But with that lower cashflow you could reasonably expect to gain significant equity and appreciation under a long term holding strategy vs potentially lower price points on the west coast. Housing shortage is a big factor and new build's won't alleviate that pressure anytime soon.

The barrier to entry will be a bit higher over here with median single family homes hovering around 500K but with 10-12% YoY appreciation would you prefer a lower cost asset that puts 250 per month in your pocket?

I don't think I would.

Good luck!