Investing in rental properties is one of the best ways to invest in real estate to generate steady cash flow and create wealth.
While there are distinct benefits of investing in rental properties in numerous markets, real estate investors looking for the best profit opportunities should turn an eye to Florida. The sunshine state has many exciting real estate investment opportunities in several respects.
So, here are some of the biggest advantages of investing in Florida rental property.
Stable and Growing Renter Base
Florida has experienced population growth for years, and the population boom in the state isn’t likely to slow anytime soon. It’s project that the population of Florida will continue to grow by about 320,000 resident per year into 2020. For real estate investors interested in Florida rental properties, that’s good news. A growing population should result in a growing tenant population and a vibrant rental market.
Compared to other states that are experiencing net population increases, Florida also has a big advantage with a high percentage of stable renters. That’s because Florida has the highest percentage of individuals of retirement age of any state. Currently, almost 18% of the state’s population is over 65, and those numbers will keep growing. Senior citizens are incredibly stable renters, since their income is usually not based on employment and is therefore stable.
Since Florida does not have a personal income tax, real estate investors with rental properties in Florida can increase their profitability, even while living in a different state.
As such, investors often take advantage of Florida’s favorable tax laws by investing using a LLC, or as a sole proprietorship. But there are some nuances to consider, depending on where you live. So consult your accountant and tax lawyer to learn how you might be able to increase your profitability by owning rental property in Florida compared to other states.
With traditional residential rental properties, landlords usually want to hold on to tenants as long as possible to lower their costs and increase profitability.
But with vacation rental property, a landlord wants to get as many vacationers as possible to rent their property each year. Therefore, Florida is an excellent place to own vacation property with the high volume of vacationers visiting the state each year.
Much of Florida’s vibrant economy is based on a bustling tourist trade, and tourist numbers are likely to keep increasing for the Sunshine state as the national economy improves. Though investing in vacation properties can be more risky in other states, Florida’s reputation as a premiere national and international destination eliminates much of the risk for savvy real estate investors.
And of course, if you like to personally vacation in Florida, there’s nothing better than owning your own vacation property where you can stay while in the state, while also using it to generate profits the remainder of the time.
Soft Factors Will Keep Markets Growing
From a hard numbers standpoint, Florida rental markets are incredibly inviting to investors. Property values in Florida have rebounded faster than almost anywhere else in the country following the 2007 bubble, and prices are projected to keep rising in most Florida metro areas.
But to explain why those numbers are likely to keep rising, and shed more light on why Florida is such a smart place to invest in rental properties, it’s important to keep the soft factors in mind.
Beautiful weather year round has made Florida an international destination for sun chasers, which helps real estate markets. Cosmopolitan culture in cities like Miami and Tampa draw in a refined class of worldly residents, combined with all the other factors that make Florida a unique place to invest in rental real estate.
Real Estate Investing in Florida
Graystone Investment Group is an experienced Real Estate Investment Group, wholesaling properties in the Greater Tampa Bay market (on the Gulf Coast of Florida).
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.
To learn more about the profitability of real estate investing in the Greater Tampa Bay, please fill out our Investor Profile, or contact us direct.