Is anyone finding and buying income producing properties that make sense in Florida anymore? If so, how? Between interest rates, taxes, and the most ridiculous property insurance rates I’ve ever seen I don’t know how anyone is able to get a decent return here anymore. When mobile home park operators are asking for 5-6% cap rates including park owned homes you know things have gotten out of hand. It seems like everyone is selling their income properties down here as well showing nice big NOI’s and decent cap rates; however, when you run the adjusted #'s on the new tax rate and insurance (if you can find it) you want to cry. Now, I will say other opportunities have become available by way of the new foreclosure boom (1 out of every 254 homes are going back to the banks), but I went to an auction and it looked like the unemployment line in Flint, Michigan. There was so much competition that the properties were being bid almost to fair market value??? It is just crazy and I wanted to see if anyone else out there is making things work here and what types of property they are finding.
While insurance rates, real estate taxes and even prices have gone sky high in Florida, its still Florida. Thousands of people move into that state every day and the ultimate driver of prices is demand.
Excellent point. Florida is Florida and will always be popular with the baby boomers which are just starting to get into the retirement age. That said I do see a lot of people especially the Florida “crackers” as they call themselves leaving for Georgia, and other parts of the country.
Florida has priced itself out of the market for a lot of retirees.
I do believe it will make a comeback (especially since we had NO Hurricanes this summer :D). It’s hard to hold on though especially when investors properties are no longer cash flowing because of Taxes and Ins. Believe me I know.
SpaceAce
I here you, I too own investment property in Florida. Insurance went up 50% this year and property taxes are through the roof. But I’m sure glad my name has been on the deed for the last five years as appreciation has exceeded all expenses.