Last updated on June 21st, 2023
Panama city beach airbnb property investment
Owning a beachfront property is a dream for the majority of people who want to live a peaceful life. While there are truly other coastal areas in Florida where you make this come true by earning a passive income, Panama City Beach is one of them!
Located at the Gulf of Mexico in Northwest Florida, this city will truly satisfy one’s needs to get enough sunshine throughout the year. Panama’s emerald green waters and sunny weather provides fun & exciting beach activities which have been one of the reasons why tourists prefer to visit the place.
Featuring amusement parks, family-friendly attractions, and zoological conservatories, Panama City Beach is a perfect getaway destination for all kinds of travelers.
Panama City Beach is the perfect beach town for those who want to earn a passive income by purchasing a property for Airbnb. In addition to this, it’s also best to do market research and use an Airbnb income calculator to make informed decisions.
In this article, we’ll discuss our findings about property investment for Airbnb, along with some actual beachfront homes for sale in Panama City Beach, FL. Let’s dive in!
Advantages of Buying An Airbnb Property in Panama City Beach
It’s a given fact that Panama is a favorite beach destination for tourists, but there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the facts about Panama City Beach that can help you figure out if it’s a good place to invest in an Airbnb property:
1. High Appreciation Rate & Demand
To begin with, this factor is mostly being looked after by property investors to ensure that it will be an excellent long-term investment. In Panama City Beach, the property appreciation rate is extremely high and the demand is consistent.
2. Affordable Properties
One of the primary reasons why there are plenty of people flocking to Panama City Beach is because of its sustainable cost of living. This is also good news to investors who have just started their journey to investment: Panama City Beach properties will not bring all the money out of your pocket!
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“Panama City Beach in Florida has affordable properties no matter your budget. Even with the high demand for properties, there hasn’t been a crazy increase in property prices. The cost of living is also affordable at 10.6% below the state average.”
– Destin Property Expert on Panama Properties
3. Rewarding View of Sunsets
Let’s not forget the very reason why investing in a beachfront property in Panama is the best: the view of sunsets by the beach! With Panama’s clear turquoise waters and crystal white sandy beaches, it’s certainly worth every penny. Not to mention that there are also plenty of outdoor activities to do around the area.
Disadvantages of Buying An Airbnb Property in Panama City Beach
Now that we know the pros of investing in Panama City Beach, let’s discover some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. Traffic Congestion: Tourist Population
In relation to the plenty of tourists in Panama City Beach, it will be difficult to get complete silence and the traffic congestion is bad as there are people flocking to the area. Although this is pretty common in beach towns, it’s certainly a thrill to other property investors who want to cater to more people for accommodations.
2. Frequent Storms & High Summer Heat
While it’s truly frightening to experience storms by the seaside, it is pretty common to experience them in Panama City Beach. During the summer, it’s also expected to experience high summer temperatures.
Profitable Neighborhoods for Airbnb in Panama City Beach
While Panama City Beach is undoubtedly one of the best property investment cities in the USA, let’s take a closer look at the important Airbnb key metrics. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods in Panama City Beach:
1. Open Sands
- Annual revenue: $61,353
- Average daily rate: $200
- Occupancy rate: 67%
2. Gulf Highlands
- Annual revenue: $52,476
- Average daily rate: $200
- Occupancy rate: 63%
3. Bay Point
- Annual revenue: $47,023
- Average daily rate: $181
- Occupancy rate: 51%
Is Property Investment Profitable in Panama City Beach?
Using a short-term rental income estimator, it was discovered that a 2-bedroom apartment in Panama City Beach can generate an annual revenue of $67,051 with a steady occupancy rate of 60% and a nightly rate of $231.
Panama city beach airbnb property investment
Properties for Sale in Panama City Beach, Florida
Buying a beach house property in Panama City Beach will not only let you have access to a delightful vacation spot, but it can also bring an excellent return on investment and become a reliable income stream. It may be difficult to find the best properties that have the potential to produce high yields and capital growth, and this article will certainly help you through!
Here are some of the houses for sale in Panama City Beach along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
116 Damon Cir UNIT B, Panama City Beach, FL 32407
1. Studio-type Property for Sale Panama City Beach
- 1.2 miles to J.R. Arnold High School
- Asking Price: $149,000
| GROSS RENTAL YIELD | 22.05% |
| ANNUAL REVENUE | $33,058 |
| CASH ON CASH RETURN | 40.39% |
6903 N Lagoon Dr APT 25, Panama City Beach, FL 32408
2. 1-Bedroom Type Property for Sale Panama City Beach
- 4.2 miles J.R. Arnold High School
- Asking Price: $168,000
| GROSS RENTAL YIELD | 22.62% |
| ANNUAL REVENUE | $38,009 |
| CASH ON CASH RETURN | 42.11% |
112 Fairway Blvd UNIT 108, Panama City Beach, FL 32407
3. 2-Bedroom Type Property for Sale Panama City Beach
- 0.6 miles to Surfside Middle School
- Asking Price: $197,000
| GROSS RENTAL YIELD | 22.34% |
| ANNUAL REVENUE | $44,016 |
| CASH ON CASH RETURN | 41.26% |
601 Cape Cod Dr, Panama City Beach, FL 32407
4. 3-Bedroom Type Property for Sale Panama City Beach
- 0.4 miles Surfside Middle School
- Asking Price: $250,000
| GROSS RENTAL YIELD | 22.89% |
| ANNUAL REVENUE | $57,227 |
| CASH ON CASH RETURN | 42.90% |
6314 N Lagoon Dr, Panama City Beach, FL 32408
5. 4-Bedroom Type Property for Sale Panama City Beach
- 4.8 miles to J.R. Arnold High School
- Asking Price: $365,000
| GROSS RENTAL YIELD | 25.91% |
| ANNUAL REVENUE | $94,588 |
| CASH ON CASH RETURN | 51.98% |
Conclusion
Investing in a property is certainly a huge step that one needs to not only think about – but also conduct market research for accuracy. With the various industries & recreational activities to do in Panama City Beach, it can generate a nice cash flow for property investors as long as the right neighborhood is targeted and potential revenue is calculated using an Airbnb rental arbitrage calculator. While there are many other cities to invest in Florida aside from Panama City Beach, it’s definitely worth the time & effort to speak with a short-term rental expert to make the wisest decision for property investment.
