Is Florida real estate really a buy and hold option? People ask me all the time where is the best place to invest in real estate right now (after all I am the number one advocate of promoting LOCATION). The answer of course is “it depends on you”. Everyone invests for different reasons.
If you are looking to invest For Cash Flow I will have a different answer than if you are looking to invest in Growth or appreciation. (These have been my areas of interest for some time) I have often wandered why so many people like investing in Florida when there are clearly other locations that can give them better returns. The Answer of course is their objective. Buy a Home today and move into when they retire or use it as a second home.
Yes Florida is a Buy and Hold state. If your objectives are met because you have Florida property and you hold it for at least 5 years or better you stand to make good appreciation or Growth while you are enjoying your Florida Property. Truth be told Florida has always been highly sought after location and as the Massive amount of Baby Boomers retires they want the sunshine state to be their new home. The one thing holding Florida back from growing right now is job growth or lack there of. As Job Growth returns so will the loans to purchase homes return and in turn values will go up.
UPDATE: Most recently Cash flow has entered the picture.
While most people are looking to Florida investments as a second home environment where they can purchase today and move in later we have actually been able to find some incredible properties build in the past 5 years that are now cash flowing. These properties are REO properties that are acquired, rehabbed if needed and sold rent ready, managed and you the investor can buy a performing asset.
The best way to invest in Florida is to “not wait to buy Real Estate in Florida. Buy Florida Real Estate then wait”.