Single Family in Ft. Lauderdale as investment?

Question

Hi everyone.  Anyone have experience in Ft. Lauderdale for investing in single family home as a monthly/annual rental?  What areas are best?  Does anyone have recommendations on agents/management companies as we'll be long distance owners?  Looked at Cape Coral and while that market seems good for investing, it's not where I'd choose to be if we convert this to a retirement home in the future.  Also, I fly fish the Bahamas and if we snowbird there eventually getting to the Bahamas is quite easy and quick.  Also, my wife has family there so for those reasons I'm shifting locations considering investing in Ft. Lauderdale.  Would love to do a condo but afraid of rental rules and HOA fees.  Many thanks in advance.

Janet Williams · Answer

So much information, I am just a sponge absorbing everything.   I want to take my sister to Bahamas for a getaway when she comes in from London, where do you suggest is the best place.   And this would be my first time going to the Bahamas.

Engelo Rumora · Answer

I own quite a few condo's in Freeport, Bahamas

They are probably one fifth of the price compared to Fort Lauderdale

It's also much quieter and more beautiful in the Bahamas than Florida

Only a 25min flight away :)

Just my opinion

Thanks

Tim Kanak · Answer

@Raymond Rashid Where are you finding $80k condos in FLL?   Near the beach most of the HOAs are closer to $800 per month.

I live a couple miles from the beach and am still paying well over $450 per month (east of 95).

@Anand S. I've been looking for STR of SFH... though not east of US1, because then you are looking at dropping $600k+ and unless you have the money for a luxury rental on the beach, you aren't seeing a cash on cash return for that kind of coin.

@Karl Hinkel the problem is millennials are entitled and picky (trust me, I'm one).  They are renting from new construction condos with amenities, not tri or quad plexes.  Most of these are being developed by large corporations and sold to other large corporations or syndications, not small privately held apartments - from my experience.

Andrew S. · Answer

I think the issue, when I was looking at it, was that two different realtors told me you couldn't rent out most condo's month to month or short term.  Even long term was not an option for a lot of them?

Raymond Rashid · Answer

I'm new to this Forum... so pardon my ignorance...There are alot of Condos in the 65-80k mark that are turnkey ready and command rents from 1100-1500/month. HOA is on average 300, and mortgage and principal assuming 5% is 342 (assuming 80k, 20% down), property tax at 100/month, and home insurance at 100 a month. You would be netting  258 to 658. Factor in vacancy at 4 % 248 to 631.

Am I missing something here? but if it's the latter at 600+ would that not be a pretty good investment?

Anand S. · Answer

You can do well if you STR a SFH in Ft Lauderdale. I'd recommend purchasing East of US1 and close to downtown, this gives you close access to the beach (the main attraction) and restaurants/nightlife.

Karl Hinkel · Answer

There is opportunity in Fort Lauderdale, the macroeconomics and job growth is stimulating in migration from millennials who are primarily renting, which opens the door for further growth in rental rates. If construction continues to strengthen in the multifamily sector I would still see the potential for more growth in rental rates, but at a slower pace.

Andrew S. · Answer

So I continue to look into the Bahamas, and went back a second time to fish.  I can sure think of nicer places to be, but there is something about the people and laid back atmosphere that attracts me to it.  And then I ran into someone who has a condo and rents it out, about 100% booked during peak season (Coral Isle).  So I believe in turning over leaves and seeing what's beneath them but am having ZERO luck getting any realtor to call me back!!  NONE.  One has made a half a**** attempt by calling me and always hanging up before leaving a voice mail.  I'm looking primarily at Freeport because of proximity, and a bit less tourist craziness and from there if I go one to two weeks a year can fish there or hit the other islands easily.  Any real estate agent recommendations?  Is this part of the Bahamian thing that out of three realtors NONE will call back or email back and don't seem to care?  Also, the owner of the fishing outfit (who is from the UK) said that there are many unscrupulous realtors who save the best deals for themselves as they're allowed to purchase real estate and he said deals, even in that depressed economy, are very hard to find.  My goal, which I'm not sure is attainable, is to have a property I rent out VRBO..etc and break even within 3 years, therefore paying for my place.

Marc Middleton · Answer

I can find 7 caps in Broward in C+/B areas, its possible. You need a 7cap + if you plan to use debt and still want to cash flow it with a 5% int rate. Can also find condos that pay that as well...

Egemen Toprak · Answer

Ft Lauderdale is an amazing place to live but i think a bit expensive now to invest. I ve been looking multifamily in the area and most of the things around 5% cap

Single Family in Ft. Lauderdale as investment?

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