Florida has one of the hottest real estate markets in the country and there are plenty of investors that flock here every year looking for a good deal. If you’re an investor and you’re wondering how much startup capital do you need to invest in Florida real estate the answer is complicated. Miami real estate can be pretty expensive while other parts of the state have a much lower barrier to entry.
What are Your Goals
Whether you’re investing in Florida or any other market in the country you need to know what you’re goals are. Are you looking for a quick flip, rental property or some other type of real estate investment? Is your goal to sit on property that is going to appreciate or are you after cash flow. Next you have to take a look at the different areas of Florida and the price ranges in each. Florida offers a variety of prices so there is something for every level of investor.
Location, Location, Location
You can probably find a property with a price point in and around $100,000, that could be a condo or a single family home that you can rent out and generate some cash flow. Alternatively you can find property at that price point for a quick flip. But at this price point you will be away from the coasts and the tourist hotspots. Some of the smaller towns and communities in the interior of Florida is where you will find deals at that price.
Florida attracts millions of visitors every year and that presents the savvy real estate investor a unique opportunity. There is big money to be made in vacation rentals. For vacation rentals you want to look at some of the more populated tourist spots, Miami, Fort Lauderdale, Orlando and Palm Beach. In Orlando you may be able to find a property in and around the $250,000 range but other communities like Miami or Palm Beach then you can expect to pay $500,000 and more. Be careful of municipal regulations and homeowners’ associations before you buy a vacation rental property. If you are unsure how to make money with vacation rentals then here is a guide.
Work with a Realtor
Regardless of where or what type of investment property that you are looking for you will need to find yourself a good realtor that can help you find the right properties. A good realtor can help you fill your portfolio with the exact type of properties that you are looking for.