Condo Investments in South Florida

[Matthew Maynard]

I've been going back and forth deciding on whether I want to start off by investing in a single family home or purchasing a condo. On one hand, the appreciation should be higher with a single family home. But with condos, the potential to get a better location for a cheaper price is appealing, and I've also thought about turning it into an airbnb since we're in a vacation destination. 

Does anyone have any experience with condo rentals in south Florida? And any experience turning them into an airbnb? How viable are condo rentals in the current market?

[Kyle Funnell]

Hey @Matthew Maynard,

I am an investor/realtor in Palm Beach county. 

Like Mike said, Condo's are tricky. On top of everything he went over, some condo's only allow you to rent once a year. So if your tenant doesn't pay rent and you evict them, you cant rent it out again until their lease would have been done. That also eliminate's the possibility of airbnb.  

I wouldn't get caught up with what is the best location, rather what is the best investment. In short term rentals, it may matter more about location, but if SFH it doesn't matter as much. Look at the market rents in the area and make sure you are getting a good cash on cash percentage.

Duplex's and triplex's are preferable but there are a lot of investors in the area taking anything that is a good deal. Also, I am sure you have seen the ones that are a great deal are not in the best neighborhood. Have you considered moving your search north? I am finding some good deals in the Martin County area that have some good cash on cash returns. 

Kyle Funnell, Realtor