The majority of potential real estate investors that are new to the hard money lending industry struggle with the important decision of what national markets they should concentrate their hard-earned money on for the greatest return on investment. There are two key reasons why Florida is an emergent real estate market that offers enticing investment opportunities. First and foremost, Florida boasts a consistently increasing job growth. Unemployment statistics are dropping, which has prompted more and more young professionals to relocate to the Sunshine State in search of new employment. This trend has seen an explosion in the demand for long-term rental properties across Florida. Second, there has been a significant uptick in the number of new real estate development projects in most of the major urban areas in Florida. Builders are aware that the market is primed for future growth and acting accordingly. Mainstream media appears to be taking notice as well—with a recent Forbes report indicating that Florida has the largest number of investment-friendly cities in the country.
So where exactly in Florida should you consider investing? If you are seeking outstanding investment options through a hard money loan, it’s simply not adequate to limit your focus down to an entire state—you’re going to have to dig a little deeper than that. To help you out, here’s a closer look at what the data shows are some of the most promising Florida markets to consider making an investment in.
With an average property rental price of $2,122 a month and an average home valuation of $318,141, it’s pretty apparent why the majority of residents in Fort Lauderdale opt to buy instead of rent. Although the rental price is one of the highest in the state, the median home price is right around the national average. What’s more, median home prices in the city and surrounding suburbs are anticipated to increase substantially in the coming years, which means that now is the time to pull the trigger on promising investment properties. Note that Fort Lauderdale is one of the leading areas for job growth across the entirety of Florida, which translates into more people moving to the city that will ultimately be looking for places to live. With a severely limited amount of remaining dry land to build new homes on coupled with a rapidly increasing population, there will inevitably be a jump in appreciation for properties located within the city limits. All of these factors are promising from an investment perspective if acted upon in the near future.
A year ago, Tampa was named by Forbes as the second-best city for real estate investments in the entire country. In fact, the entire Tampa Bay region is an optimal location for investors concentrating in buy-and-rent strategies. The average rental price is $1,829 and the median home value is $173,250. With the local economy posting solid growth statistics year-after-year, Tampa boasts a rising number of bank-owned houses for sale—meaning real estate investors can have their pick from a wide array of optimally-priced properties that can net a sizeable return on investment down the road. Add to that an exponentially-increasing population sparked by a turnaround in the employment sector in the area and you will understand why a considerable number of savvy real estate investors have targeted the Tampa area. The numbers don’t lie—Tampa has time and time again been named in the top 10 rental markets on a national basis—seeing double-digit appreciation of single-family residences. Throw in low unemployment, ideal weather, top-class beaches and a booming economy and it’s easy to see why it should be one of the top places to consider making an investment move.
When it comes to successful real estate investing, statistical analysis plays a huge role in making informed decisions about where to concentrate your resources for the biggest bang for your buck. And that’s why Jacksonville is an excellent choice, as homes in Jacksonville have increased in value by 9% over the course of this year alone. Simultaneously, Jacksonville has experienced a 4.1% growth in job availability. This data indicates clearly that Jacksonville is primed to be one of the best emergent markets in Florida and investing in local properties now before the market explodes could see a huge pay-off down the road. Right now, houses are priced to sell in Jacksonville, with the median home value at $165,755. Appreciation should be ideal considering the aforementioned market data, so investors should make their moves as soon as possible to capitalize on this distinct opportunity.
Interested in investing in the Florida real estate market? Reach out to Alpha Funding Partners today! We’ve recently added a new headquarters office and would love to partner with you on your next investment.