Investing in Tampa??

Question

Is Tampa a good area to start investing for multi family??

Jared Prevost · Answer

Matt, this is almost the equivalent of asking, "Is the United States a good country?"

On what parameters? For who?

Investors buy in EVERY SINGLE MARKET and make money. In my opinion, so long as there are good institutions in the state and country, there is no such thing as a bad market. There are good and bad markets for YOU to invest in given where you're at and what your goals are.

Perhaps better questions to ask are; "What strategies are good for multifamily in Tampa?", "What area am I most likely to get a good deal, find good tenants, and get good long-term appreciation in Tampa multifamily?", "Given someone in my XYZ experience/situation, how would you recommend finding success in multifamily in the Tampa area?"

Ask good questions and get helpful answers :)

Dan Maciejewski · Answer

What's your angle?  I assume you're not a developer looking for connections with city council members!  The groups that are starting hundreds units projects are betting on the market.  There's hundreds of million flooding the market with development.

The acquisition of small to medium multifamilies looks like garbage based on current rents.  BUT the Tampa market is projected to grow almost exponentially in the next decade or so.  We have many sectors of mid-to large cap business relocating here.  And that brings jobs.  As long as we can stay business-friendly, that will continue.  That means rents will continue to come up -- to a point.  But they can't rise forever.  They will stop at the level that the ideal tenant for the asset class can no longer afford to live there.  At that point, you will have to spend money to upgrade the units, hoping that the neighborhood does the same.  Or have already purchased in either an improving neighborhood, or an established one.

There are still plenty of undercapitalized small to medium multifamilies in the Tampa Bay Area.  Not many ion-market, though.  And the ones on-market are asking almost the price to build new!

Personally, my multifamily bets go to:

1. Luxury units in established neighborhoods.  South Tampa will continue to draw high-earning tenants that will need to rent before they can buy/build their homes.

2. Affordable units that will continue to be in demand as mid- to lower-income tenants get priced out by other landlords.  I'm not saying be a slumlord, but there will continue to be a huge draw for units renting, say, 1200-2000.  Especially units that are well maintained and updated.

Mya Toohey · Answer

@Matt Sora

Hi Matt, I am in the Clearwater area of Tampa Florida.  I deal with only investors and income producing properties.  A really smart move is to Ling term rent one or two units for steady cash flow and Airbnb out one or two. I specialize in STRs here and it's a money maker.  Especially, when you have multiple revenue streams from one property.  If I was buying for me right now, that's exactly what I would do here!  We are very restricted, so, make sure you work with someone that knows the areas well.  I'd be happy to chat about it!

Josh Green · Answer

As mentioned above - what do you define as "GOOD"?  While the market has been competitive (2022's hottest market!), there's many investors that would call the greater Tampa area a GREAT place to invest.  Outlook over the next decade or so look very positive here as far as growth, appreciation, etc so yes, I would say Tampa is a great place to invest long term.  What's going to be the important factor is the subject property you actually find.  You can find a good investment purchase in essentially any market/metro - good or bad.  You can also find bad investments in any market - good or bad.  Depending on your situation, your goals will vary and that's where a good mentor or realtor can help you determine.  Feel free to DM me if you'd like to discuss what that may be for you and how I can help in the Tampa Bay area to get you there.

Jorge Vazquez · Answer

Hi Matt, 20 years of investing in Tampa. Some good deals are coming up from panicking sellers from the last quarter. I sold five duplexes in the past three months in Tampa, most of them hitting the 1% rule. The window closes as market news suggests a soft landing with the economy, and the panicking sellers will dissipate.

Kevin Baker · Answer

Matt, Tampa is growing fast. Like it was previously mentioned, hottest market in 2022. Look at the areas around Tampa, they are exploding. New communities are popping up every six months. Like @Jim Pellerin said, there is a lot of competition but people are still making it happen! You can really focus on anything in our area, wholesaling, fix n flip, brrrr, STR, multi-family. There is a military base, the ocean, theme parks, downtown life and even the country. There are so many people looking to rent. People are moving from all over the country to our area. You just have to find the right mindset, deal and team in place. In my opinion, yes Tampa Bay is a great area.

John Karg · Answer

The individual deal will always matter more than the area itself, but in Tampa there are a lot of multifamily properties to choose from, so I personally think it's a good area to look. That said there is a lot of competition, so when you find a deal you've got to move quickly.

John

Raymond J. Rodrigues · Answer

Hi @Issa Santos, if you are looking for properties to STR and MTR in the Tampa area, reach out to @Josh Green. He helps a ton of BP members and is really good at what he does. He is an investor/investor focused agent. I hope this recommendation helps!

Jordan Sand · Answer

Following too -- curious on this market.

Investing in Tampa??

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