A home on Florida’s Scenic Highway 30A is usually not a good investment if the plan is to rent it out, says Richard Jabbour of the Jabbour Luxury Group at Scenic Sotheby’s International Realty. A buyer focused on rental income who follows the rules as written may find other kinds of investment better suited to that goal.
In his view, the more sensible route for an investment-minded buyer in 2026 is to buy land, build a house and sell it back to the market. Jabbour worked in private equity and wealth management before real estate, and he is direct about the numbers.
Why Is It So Hard To Make A 30A Rental Pay Off?
Homes on 30A are priced high, Jabbour said, because most people buying them want to enjoy them. That is why it is “very difficult to get a return on investment” on them.
His team sometimes gets calls asking whether a property will cash flow. The honest answer, he said, is that it will cash flow, but the cash flow could be negative. Sometimes the team answers with a question of its own: “Did you want to cash flow memories?”
He is blunt about the opposite pitch. An agent who tells a buyer a 30A property will cash flow with 20% down is telling them a falsehood, he said, and once those buyers see the real numbers, they usually don’t end up buying.
Why Do Buyers Pay 30A Prices If The Rent Won’t Cover Them?
For the buyers Jabbour works with, a home on 30A is about the experience, not the return. If 30A isn’t a place a buyer truly wants to be, he said, there is little reason to buy here.
He sums it up with a line he uses often: “You can’t build sandcastles on the beach with your grandbabies on a pile of bitcoin.”
The line came from a friend, Clark, during one of their regular conversations about real estate. Jabbour has never claimed full credit for it, but he uses it all the time. “It says exactly what a person should believe about their lives,” he said.
His point is that cash in the bank may feel good, but it doesn’t necessarily give you the experiences you want. If you want a boat, buy the boat. If you want vacations, take them. He says more of the buyers coming to 30A now see it the same way.
How Do Investors Approach The 30A Real Estate Market?
For investment-minded buyers, Jabbour points to building rather than renting.
“Our strongest recommendation to them is to buy land, build a house, build a beautiful house, and present it back to the market,” he said. Many of the buyers working with his team now are doing exactly that.
Buyers who want to exchange into a 30A property for tax reasons are a different conversation, he said. They may bring a very low cost basis and be using tax strategies this market can fit. His example: if he were selling a warehouse in Chattanooga and could exchange it for a beach house in Florida, used about two weeks a year with family within the rules, “I’d take that trade, too.” Exchange rules are specific, so anyone considering one should talk with a qualified tax advisor.
What If You Want A Second Home That Breaks Even?
Some buyers arrive with a spreadsheet and a return target but lean toward enjoyment. For them, the question becomes how much capital to put into the home so it is cash-flow neutral.
The goal is for rental income to cover insurance, taxes and some expenses, so the owner breaks even. A buyer might plan to rent the home for eight weeks a year, for example, and Jabbour’s team works out how much to put in to make that math work. Buyers starting that math can compare homes on the team’s current 30A listings.
“We don’t steer away from people,” Jabbour said. His team is clear about what it believes about 30A, and that tends to draw buyers who see it the same way.
Richard Jabbour leads the Jabbour Luxury Group at Scenic Sotheby’s International Realty, advising buyers and sellers of luxury homes and new construction along Florida’s Scenic Highway 30A, with an international practice that extends to Costa Rica. Before real estate, he built a career in private equity and wealth management, and he brings that discipline to 30A. His team tracks the same market data month after month, and for 11 years he has logged price predictions on meaningful 30A homes and checked them against actual sale prices. A Broker Associate and Certified International Property Specialist, Jabbour was named South Walton Realtor of the Year in 2021 by the Emerald Coast Association of Realtors. The team appears in the RealTrends Verified rankings based on 2025 sales data. He shares his market analysis on Substack, on YouTube and in the “Elements of” community series. Learn more at jabbourluxurygroup.com.
Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
