If you’re on the hunt for promising real estate investment opportunities, the Florida real estate market should be at the top of the list. Florida is one of the most active and lucrative housing sectors in the nation. With that being said, each and every city is unique in that it may or may not be an ideal location for acquiring investment properties. To assist you in determining your next investment move in Florida, here’s a handy list of the top cities to invest in real estate in Florida in 2021 while using a hard money loan.
But before we get started running down the list of Florida investment options, you’re most likely wondering what draws investors to the Sunshine State. Well, there is a whole host of reasons that support the notion that Florida is one of the most optimal places to make a real estate investment in the coming months. To that point, three out of the ten top places to invest in real estate according to PwC’s Emerging Trends in Real Estate Report for this year are located in Florida. Among the best options are cities like Orlando, Tampa and St. Petersburg. What’s more, the average property price for Florida homes for sale is $463,283 and real estate analysts are forecasting that it will increase substantially in the coming year. This means that the collective statewide real estate market will remain robust—even amidst the uncertainty associated with the ongoing coronavirus pandemic.
One of the key factors to take into consideration when keying in on real estate investment cities is job market growth and local economic conditions. Florida has a reputation for being an ideal business location. The vibrant, business-friendly government continues to draw new high-wage employment options for employees. Per a Forbes report, Florida job growth was 2.6% last year across virtually every sector to include tourism, agricultural, aerospace and finance. This high availability of jobs coupled with a favorable tax treatment framework and relatively low cost of living has served to attract more transplant residents than other states. When it comes to unemployment, Florida has a meager 3.3% rate—and that number is predicted to continue dropping.
Another important area to note is population growth. Because Florida consistently ranks as one of the premier locations to establish or expand a business, there is a growing number of millennial workers moving to the state in order to obtain new employment and career opportunities. Other factors such as the low cost of living, reduced property taxes and insurance costs, no state income tax and optimal health care coverage all contribute to a sustained population growth across the state—and more people means more demand for flexible housing options. Real estate investors need to recognize that this ongoing expansion in population is only going to boost the existing demand for flexible housing options and long-term rental properties.
If you are opting to invest in rental properties in 2021, the aforementioned market factors make Florida a prime location to expect a healthy return on investment. Take, for example, Rotunda West. The median property price is $302,438 and the average monthly traditional rental income amount is an eyebrow-raising $2,654. Or look to Summerland Key, where the median property price is just shy of $1`million and the average rental income is an astonishing $5,048. With demand for rental properties at an all-time high in these areas, investors should consider making a move in these markets—the robust average rental incomes in both cities are more than enough to accommodate for mortgage and upkeep expenses while still ensuring an ideal passive income revenue stream.
No matter where you choose to invest, the team at Alpha Funding Partners is ready and willing to provide you with flexible financing options to help turn your investment dreams into reality. Contact us today to learn about how we can assist you in getting the capital you need to make your next investment move.