Florida still offers plenty of buying opportunities for single family rental investors.
Of the top ten markets (population 500,000+) that had the highest percentage of seriously underwater properties, Florida markets took up six spots in the Third Quarter of 2015 according to RealtyTrac which defines a property as “seriously underwater” when the combined loan amount secured by the property is at least 25% higher than the property’s estimated market value.
Topping the list was Lakeland, Florida at 28.0%, followed by Las Vegas, Nevada (27.3%), Cleveland, Ohio (27.2%), Deltona-Daytona Beach, Florida (26.7%), Orlando, Florida (25.6%), Tampa, Florida (24.3%), Toledo, Ohio (24.1%), Chicago, Illinois (24.0%), Brevard County, Florida (24.0%) and Jacksonville, Florida (23.8%).
Five Florida markets were also among the top eight markets where the share of distressed properties (those in some stage of foreclosure) were seriously underwater. The Deltona-Daytona Beach, Florida market was the highest with 58.5%, followed by Las Vegas, Nevada (56.5%), Lakeland, Florida (55.8%), Brevard County, Florida (54.1%), Cleveland, Ohio (53.4%), Chicago, Illinois (52.6%), Tampa, Florida (52.3% ), and Orlando, Florida (51.7%).
Nationwide, the percentage of seriously underwater homes has fallen to 12.7% of all homes with a mortgage. That percentage peaked in the second quarter of 2012 at 28.6%.