By Jorge Vazquez, CEO of Graystone Investment Group
In my twenty-plus years of real estate investing, I’ve seen plenty of “market research” that’s just recycled Zillow screenshots and fancy charts pretending to know what’s really happening.
At Graystone, we do it differently.
We run our own data—real deals, real rehab numbers, and real rents from our acquisitions and property-management teams across Florida. Every number in this report came straight from our in-house underwriting on twenty-five properties analyzed over the past few months.
This is exclusive Graystone data. You won’t find it on Redfin, and no AI bot is pulling it off the MLS. This is the stuff investors pay consultants thousands for—but we’re giving you the real picture, straight from the field.
What Cap Rate Really Means (Explained Like You’re 10)
If you buy a rental property for $200,000 and it nets you $16,000 a year after expenses, your cap rate is 8%.
That’s it. It’s like saying, “If I bought this in cash, what percentage return would I get?”
A higher cap rate usually means better cash flow—but it might come with more risk, rougher neighborhoods, or heavier rehabs.
Lower cap rates usually mean safer, pricier areas with smaller monthly margins.
The trick is to balance both—and that’s what our research does.
Section 1: How the 25 Deals Stack Up
We looked at twenty-five properties from Tampa, St. Pete, Clearwater, Bradenton, Palmetto, Spring Hill, and even a few up the coast in Melbourne and Holiday.
Each deal was reviewed with Cody Bergstrom from our acquisitions team, and every cap rate was calculated using projected rents and our rehab assumptions—not wishful thinking.
Here’s how they shook out
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Section 2: The 7–8% Cap Range — The Sweet Spot
This is the comfort zone for most of our out-of-state investors.
We’re talking about homes like:
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Everett Ave in Spring Hill – 7.67% cap with $1,700 rent and $45k rehab.
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Nome St in Tampa – started at 4.5% cap due to financing, but after 15 months it jumps to 12% cap thanks to PITI drop-off.
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Palmetto drive property – 7.78% cap on a $215k buy, $2,200 rents, $35k rehab.
These aren’t glamorous homes, but they’re steady. They fit the “velocity strategy” I teach—build equity first, then let cash flow take over.
Every one of these would cash flow from day one with proper management and a smart rehab budget.
Section 3: The High Performers — 9% and Above
These are the deals that make you smile when you hit the calculator.
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Clearwater brick-frame rehab on Glenwood Ave hit 9.61% cap.
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A St. Pete duplex on 18th Ave S came in at 17% cap—yes, seventeen percent. It’s a heavier rehab, but $3,900 rent on a $190k buy is the kind of math you don’t argue with.
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High-end rental near St. Pete Beach cleared 9.16% with $3,200 combined rent after rehab.
Most of these have one thing in common: duplex or ADU setups. Florida zoning flexibility is a secret weapon for investors who know how to use it.
When you can rent two units under one tax bill, cap rates love you for it.
Section 4: The Flip Crossovers
We saw at least a dozen properties that could go either way—flip or hold.
Let’s look at a few examples:
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These are the kinds of deals where investors debate whether to flip or refinance.
At Graystone, we usually ask: What’s the velocity here? If you can pull your money out fast and repeat the process, that beats one big flip check every time.
Section 5: The Multi-Unit Advantage
That 4-plex on Russell St S in St. Pete hit an 8% cap even at an $800k price.
All four units are Section 8 tenants with guaranteed rents totaling $6,780 per month.
You can’t beat predictable cash flow in this market.
We also had an off-market duplex from Don Ong that landed at 7.87% cap after rehab. It’s fully renovated and produces around $3,000 per month combined.
These are the deals that tell me Florida’s market is maturing: investors are prioritizing steady multi-income streams over one-off flips.
Section 6: City-by-City Breakdown
The takeaway? St. Pete and Clearwater continue to lead Florida in returns for working-class rentals, while Tampa remains king for flip velocity.
Section 7: What Our Research Reveals About Florida in 2025
Here’s what stood out after reviewing all twenty-five deals:
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Cap rates are stabilizing between 7% and 9%, meaning investors can underwrite with confidence again.
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Rehab costs are predictable—materials and labor spiked in 2022–2023 but have leveled off.
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Rents are sticky. Even if prices soften slightly, rental demand hasn’t flinched.
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Flood zones matter. Several deals (especially in St. Pete and Pasco) showed how a $1,500 insurance premium can erase a point of cap rate overnight.
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Creative terms win. We built margins into each deal—sometimes via seller credits, sometimes wraparounds or partnerships.
This isn’t a down market; it’s a smart market. The investors who slow down and study the math win.
Section 8: Graystone’s Edge
We don’t just manage properties—we study them. Our database tracks rent growth, rehab ROI, and cap rates across hundreds of active doors every month.
When our agents or investors ask what’s really performing in Florida, we don’t quote a blog—we open our own spreadsheets.
This report is a snapshot of that exclusive research ecosystem that only exists at Graystone.
Final Takeaway
If you’re wondering whether Florida’s still a good place to invest—the answer’s right here in our numbers.
Cap rates are healthy, inventory is moving, and returns remain strong if you buy smart and renovate with purpose.
At Graystone, we don’t chase hype; we track data and build wealth through discipline. That’s why we still say:
“You invest. We do the rest.”
Keep it consistent, stay patient, stay true—if I did it, so can you. This is Jorge Vazquez, CEO of Graystone Investment Group and Coach at Property Profit Academy. Thanks for reading—until the next article, take care and keep building!
If you’d like to connect directly with me, book a time here: https://graystoneig.com/ceo.
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