The Pros & Cons of a Naples Park Investment Property
Naples Park is the best neighborhood for real estate investing in Naples. (You can quote us on that!) It has all of the usual benefits of Florida real estate, from beautiful weather and sandy white beaches to tax advantages and excellent returns. On top of that, it’s also an affordable up-and-coming area with massive long-term growth potential. Whether you’re a seasoned or beginner investor, you can reap the benefits. If you’re considering investing in Naples real estate, we’re here to tell you why you should choose a Naples Park investment property.
Let’s start by introducing ourselves! Naples Relocation Experts are just that: experts on all things Naples. We pride ourselves on knowing the area and local market better than any other real estate company. We also specialize in real estate investing with our own successful investment properties to show for it. We truly believe in building a better future for our community, and that relies on partnering with savvy investors like you who want to see Naples thrive.
Ready to learn more? Here are some pros and cons of purchasing a Naples Park investment property.
About Naples Park
Before you learn why (or why not) to invest in Naples Park, we want to help you understand who Naples Park is. Naples Park is a census-designated place (CDP) and unincorporated community in Naples, Florida. The total area covers over 1.2 square miles and is considered part of North Naples, just north of Pelican Bay. Naples Park offers a suburban feel with a unique balance of affordability, prestige, and a laidback lifestyle. Close to Naples’ famous beaches and pristine golf courses, it’s home to a variety of restaurants, coffee shops, boutiques, and parks.
Check out these other statistics to learn more about life in Naples Park:
- Population: 6,151
- Median Age: 53.9
- Median Household Income: $64,676
- Homeownership Rate: 59.4%
- Diversity: 80.6% White & 14.8% Hispanic
Pro: Affordable Investment Opportunity
One of the most desirable locations to live in Naples, Florida is the area west of US Highway 41. Nestled right along the coast, it’s close to everything locals love about Naples living. It has the beach, seaside restaurants, and upscale shopping experiences like The Mercato. Of all of the neighborhoods in that area, Naples Park is the most affordable to buy, sell, and rent property.
For reference, here are the median listing home prices for some of Naples’s most popular coastal neighborhoods as of March 2023 (according to Realtor.com):
- Naples Park: $1.3 million
- Park Shore: $2.45 million
- The Moorings: $2.79 million
- Coquina Sands: $5 million
- Port Royal: $17.25 million
Con: Varied Housing Values
Naples Park was established in the 1970’s, but it’s only become more popular in recent years. This means some of the area is still in transition. You can see this while driving through the neighborhood and looking at the variety of homes available. Some are freshly built and worth over $2.5 million, while others are in need of renovations and worth closer to $400,000. At Naples Relocation Experts, we see this as a great indicator of the growth and potential in the area. As other investors continue renovating and rebuilding in the area, it will bring up the value of the entire neighborhood over time.
“Some properties are older that we know are going to go down at some point. But will it be in two years? Ten? That’s the biggest question,” said Drew Josephson, founder of Naples Relocation Experts. “In my opinion, this only makes Naples Park a better investment in the long run, but not everyone sees it that way.”
Pro: Perfect for Short-Term Rentals
Short-term rentals are one of the most popular types of investment properties, especially in vacation destinations like Naples. However, all non-HOA rentals in the City of Naples have a minimum 30-day lease requirement. (That means no weekly or nightly vacation rentals.) As Naples Park is not located within the City of Naples, it has no rental term restrictions! This provides the flexibility to offer rentals to the last-minute visitor during the off-season and capitalize during peak season. Our team has seen rental properties in Naples Park make up to $40,000 at the tail end of peak season on new construction 2,000 square foot homes.
A Naples Park investment property is such a good rental opportunity that we dedicated an entire blog to the topic. Check out “Naples Park, A Short-Term Rental Haven in the Last Frontier” to learn more.
Con: Standard Size Lots
If you’re looking to build a larger home or a home with a lot of outdoor space, you need the space required to accommodate that. A majority of the properties in Naples Park are standard size lots, which can be a little narrow. The biggest you can build on one-levels is about 2,200 square feet unless you want to add another story. If you’re looking to build a 4,000 square foot home, there’s only a handful of lots in Naples Park that are going to fit that.
At Naples Relocation Experts, we utilize an established model for a 50-foot-wide lot when building properties in Naples Park. When choosing your Naples Park investment property, you’ll likely need to find a standard size layout that works for you or be willing to build additional levels.
Pro: Safer Investment Choice
Florida is always listed as one of the best places for real estate investing, and Naples takes it a step further. The Emerging Housing Markets Index from The Wall Street Journal and Realtor.com ranked Naples as the number one emerging real estate market in 2022. We were also named as one of Travel + Leisure Magazine’s Best Places to Move To. The population in Florida and Naples has been consistently rising for over a decade, and that level of demand alone makes it a great place to invest.
“Southwest Florida has always been a solid investment opportunity,” added Drew. “Naples is even better, and west of 41 is even better than that.”
A Naples Park investment property can be an even safer investment than other neighborhoods in Naples, Florida. As mentioned earlier, Naples Park properties cost less, meaning you have less money tied up in the development process. Also, when compared Park Shore and other areas, we’ve found that Naples Park has faster turnaround times. That’s less money and less time – meaning even less risk.
Con: Older Buildings & Renovations
The city of Naples was founded in 1886, and major development began around 1929. Because of this, Naples has a lot of older houses that might require more renovations or need to be leveled. However, this also makes these properties perfect candidates for teardowns and rebuilds. For some of these homes, the land it’s sitting on is just as valuable or even more valuable than the building itself. If you’re interested in building spec houses and open to demolition, Naples Park has plenty of opportunities.
Pro: Proven Track Record for Investors
The biggest pro about Naples Park? We’ve done it, so we know you can do it too! The Naples Relocation team has a proven track record with Naples Park investment properties. We started investing in this neighborhood back in 2014 and have experienced plenty of success. For years, we rented out properties in Naples Park for a reliable profit each month. Recently, we sold one of our homes there for $1.8 million. It was a record sale for the 800 block, and had a 150% return on our cash. You can learn more about our investment journey in Naples Park in our blog, “Our Naples Park Investment Properties.”
Part of the reason why we’ve been so successful in this community is because we took our time to research the area. We have years of experience investing in Naples Park, and we want to share it with you! Our founders even live in this neighborhood – so you can say we have the inside scoop.
Ready to find your Naples Park Investment Property?
We want to be your guide to Naples Park! Our team can answer your questions, connect you with properties and contractors, and give you an expert look at the Naples real estate investment process.
Contact Naples Relocation Experts today and find the best Naples Park investment property for you.
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