First-Time Cash-Flow Rental Investor in Tampa/St. Pete Area

[Graham Reblitz]

Hi All,

My investment partner and I are currently conducting some early research on strong areas to purchase a cash flow rental, likely in late 2023/early 2024 (our first foray into real estate investing). We have family ties to the Tampa/St. Petersburg area in FL (also looking a bit in Sarasota), and upon some initial digging, we've determined that these could be potentially solid areas to start our real estate portfolio. For background, we're looking at condos/apartments, single family homes in the price range of $250-$350K. For any investors who are knowledgeable about these areas or are currently active here, are there any particular neighborhoods, zip codes that stand out as good starting points. Any extra advice on other considerations would be greatly appreciated!

[Jeremy Kloter]

Most of the time a condo/townhome won't be the right fit due to condo fees, hoa fees, etc that make it more costly for the ownership but also more management intensive. Homes can work depending on the price point but we'd recommend just jumping into a 2-4 unit property. Stay away from the lower income areas, typically we see properties more distressed, more challenging situations with tenants and late payments etc, we manage around 400 units and from experience its worth spending a little more money to be in a better part of town with more qualified tenants. There are some transitioning areas (like Ybor) where we like to check out, West Tampa, some parts of St Pete and Clearwater are growing well also. With your price point I'd look for a duplex that is 350k or so, but if all you can do is a good house to start, then start there.