[bigbri]

I am considering buying some property in Florida. I want a place that I can rent out for a few years before I retire. Any suggestions on single family , condo or town house. What areas are easy to rent in. I would like to know some of the reasonable areas that are nice.I would like to take advantage of the low property values. Also need to know if insurance is a concern in certain areas. Anything you can add will be appreciated.

Thanks

[RMD3819]

The areas closest to the beach will have the most tourists and snowbirds. They will also have the highest insurance costs.

I don't think there is any good rental area in FL right now.

I would pick where you want to retire and start there.

[Nomadicus]

Take a look at Vero Beach and Sarasota. Both areas big enough or close enough to have and small enough to enjoy it.

[gypsychic]

Originally Posted by Nomadicus

Take a look at Vero Beach and Sarasota. Both areas big enough or close enough to have and small enough to enjoy it.

I agree with these towns. Yes, insurance will come into play depending on age of home and whether you are in a flood zone. Newer is better, and needless to say away from floods zones.

[dreamer1]

BigBri, I guess it depends on where you want to be. Central Florida definitely has many homes at good prices. Also, it depends on the type of house. Manufactured homes can be a great buy and you can also rent out as short term rental. The tax advantages can be great.

[riveree]

St. Augustine rentals can be rented either by year-round tenants or vacationers/tourists.

A condo by or at the beach has the option of attracting whichever type of tenant you prefer. As elsewhere, the number of tourists is down, but St. Augustine still has tourists right now. Vilano Beach is another option to attract the same type of tenants.

Good luck in your search .

[Retiredcoach]

Contrary to what some may have you believe, it is an extremely costly and risky proposition to be an out-of-state landlord. Florida has so many extra fees and taxes for the would-be landlord, compounded with the HOA's (rules, limitations, and usually significant fees) that your Florida rental could conceivably become a money pit for many years to come. There is another factor, as well, what will you do if you cannot afford to hold, rent, and/or maintain this property? Why do you suppose that there are so many foreclosures and short sales still occurring in Florida, if the rental option could save the day? Generally, the easier to rent properties are those closest to the coasts, where reputable homeowners insurance for a rental property is sometimes very difficult to get plus the premium costs are significantly higher.

[bale002]

Originally Posted by Retiredcoach

... it is an extremely costly and risky proposition to be an out-of-state landlord ... taxes ... HOA's ( .... significant fees) that your Florida rental could conceivably become a money pit for many years to come. ... closest to the coasts, where reputable homeowners insurance for a rental property is sometimes very difficult to get plus the premium costs are significantly higher.

Heed these essential caveats. Generally speaking, you should do it only if you can pay cash, and even then you will most likely break even: any surplus over taxes, condo fees and extra insurance will probably be eliminated by extraordinary maintenance and having to pay someone to manage it for you.

It probably only makes sense if you can pay cash, are absolutely committed to retiring in Florida, want to hedge against possibly purchase price rises in future (not in the cards in the short term) and can deal with the management headaches in the meantime.

If by a few years you mean two, you can probably safely wait it out with little risk of price rises. Obviously, the further out in time you go, the risk of price increases goes up.

Having said that, probably good places to start are indeed, as mentioned, Martin and St. Lucie counties, the Sarasota area, and St. Augustine (but check out winter temps on the Atlantic coast north of Lake Okeechobee).

Good Luck!

[yamahastar]

Homeowners insurance is a bigger issue than you may realize. We have had the same insurance company for over 40 years, but because they no longer want to provide homeowner's coverage in Florida, we are forced to look to other agencies who want an arm and a leg to cover our home - and we live in the middle of the state, not on the coast! The companies who are willing to write new policies in Florida are fairly new companies and you have no idea what their service will be in a time of need. Being a renter in Florida, not the landlord, has big advantages right now.

[riveree]

The OP wants to take advantage of the lower property values and only needs to rent for a couple of years. This makes me think the OP isn't looking to get rich quick off of Florida rental property, but instead is carefully assessing the risks involved. For all we know, the OP might be liquid enough to cover all the carrying costs, if necessary, for those couple of years.

I don't think Florida property values are going to skyrocket back up, but at some point they will level off. If someone has been sitting on the sidelines for years wanting to buy property in Florida, this might actually be a decent time to do so.