Knowing where to buy a vacation rental that you can add to your investment portfolio entails consideration for a wide range of factors. However, for most people, the most important priority should be the location. So, this is the reason why Florida has always been one of the top destinations for buyers who want to purchase a beautiful vacation home. The year-round warm climate of the Sunshine State, as well as its long stretches of white-sand beach, are also a definite upside.
But if you want to buy a vacation home in Florida to enter the lucrative short-term rental market, having easy access to the beach or a theme park won’t be the only things to consider. You need to look into a property’s median home sale price, cap rate, rental rules, and net operating income to determine whether it’s a viable investment or not. So, here are some of the best places to buy a vacation home in the Sunshine State.
Florida Vacation Homes and Villas: Best Places to Buy
These are some of the top places to invest in a vacation home in the Sunshine State:
Kissimmee has been ranked as one of the top places to buy a vacation home in Florida by several real estate insiders. And, it deserves all these acclaims!
When you visit its wonderful sites, including Davenport, you will be able to try various activities that are very conveniently located. YOu can visit several tourist destinations, like Universal Studio Resort, Walt Disney World Resort, LEGOLAND, and a whole lot more.
But if you don’t want to deal with the long lines for amusement park rides, you could explore Kissimmee’s Old Town. You’ll experience going back in time as the area is composed of 18 acres of historic buildings lined with old, tall trees.
If you want to do something more thrilling, you could also go biking, canoeing, hiking, and kayaking around the town’s luscious forests and rivers.
With an average rental property appreciation rate that’s around 2% to 2.25% and the average home prices forecasted to increase moving forward, Kissimmee is not only a beautiful place but it will also deliver strong returns on your investment. This is especially true when you find some cheap beach houses in Florida in this town today and sell them in the future.
- Port St. Joe
This place was once heavily damaged by the onslaught of Hurricane Michael but is now making a big comeback, making it deserve the second spot on this list.
When you stay in Port St. Joe, you will be able to experience its unique charm, the hospitality of the locals, and long stretches of white-sand beaches. You will also be only a few miles from Cape San Blas Park where they can go snorkeling, swimming, fishing, and canoeing among other activities. The beaches in the park also allow for a good chance to take in the sun.
You would also love the food, as the place is known for its rustic fish shacks where you could taste the freshest seafood. Although this area’s median home prices are a bit more expensive compared to the ones surrounding it, the yearly vacation rental revenue and the cap rate here are high, which is good for buyers like you.
Situated in the northwestern region of Florida, Navarre is home to 12 miles of powdery white-sand beaches that are bordered by turquoise waters. The town’s main attraction is very simple—relaxation. Navarre’s popular beaches are always hailed as one of the country’s best beaches for several years now. Also, a lot of visitors look forward to crossing the famous Navarre Beach Bridge, which is a unique experience you will not find elsewhere.
You could also do yoga on top of a paddleboard at the bay or try catching fish for the first at the longest pier in Florida. But if the catch isn’t particularly good, you’ll still be able to enjoy the scenic views of Navarre’s vast dunes.
Compared to other areas on this list, Navarre’s short-term rental market is a bit smaller, but it surely has great investment opportunities for you.
- Panama City Beach
More popularly known as PCB, Panama City Beach is one of the best destinations for families, couples, and solo tourists in Florida. The city’s main attractions are diverse, and the activities that you could do here are plentiful. Anywhere you go, you’ll be able to take in breathtaking sights, like the sprawling white-sand beaches. The area is also home to some of the best private beachfront rentals in Florida, so you’d likely have a better chance of snapping up a premium property here.
Most tourists visit the Shopping Pier Park Mall for a chance to shop and stroll through a massive array of shops and restaurants. As the city is known as one of Florida’s best vacation destinations for families, anyone could enjoy exploring it. The most popular attractions here include Ripley’s Believe It or Not Odditorium and the Gulf World Marine Park.
- Amelia Island
Situated on the northeastern coast of Florida, Amelia Island is a barrier island that’s become one of the favorites of tourists visiting the state. Golfers would love this area as they can find courses that can cater to almost every skill level, while those wanting to relax will enjoy being treated at the spas dotting the island.
The food is also great here, with restaurants offering a wide array of cuisine that could fit every tourist’s palate. Although most destinations in the state are family-friendly, the island is geared more towards those who want to relieve their stress and retreat from the hustle and bustle of the city. However, if you want to invest in a rental property on Amelia Island, prepare to pay a hefty sum as the property prices here are a little more expensive than in other areas of Florida.
Now, if you’re looking for places to buy a vacation home in Florida, the items on this list you be among your top priorities. Of course, you should still do a bit more research to find a property that perfectly fits your requirements and budget.
Buying a vacation home in Florida is never easy, as there are a lot of great places to choose from. But by taking into account the cap rate and average home prices, you’d be able to narrow down your list to a few places that could bring in more favorable returns. So, wherever you choose to invest, you should consider these factors to ensure that your investment will thrive.
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