Recommendations on B class neighborhoods

[Jessica M. Grubb]

Hi! I'm looking to invest in my very first property and am leaning towards St. Petersburg Florida. I plan to buy and hold the property long term and am hoping to find a deal in a B or C class neighborhood. Does anyone have an recommendations on areas to start my search? Thanks so much!

[Alex McGathey]

Hi Jessica. I live in St. Pete and have some insight on this.

The St. Peterburg area has some B class neighborhoods that can certainly work for a long term hold. Some St. Pete zip codes to research: 

33710: West St. Petersburg on the beach side of Pinellas. Likely a better rent to price ratio than you'll get closer to Downtown. Also, easy to avoid flood zones and flood insurance in this zip code. 

33713: spotty. But can find solid deals here in the right spots. Close to downtown, growing. 

33703: the western half of this zip is investable (non flood zone, west of 4th st). Great area, growing (Whole foods and Starbucks under construction at this zip's main intersection. Home to some of my fav places to eat :) ). I'd take a strong look here. 

33702: Great area but mostly flood zones. Flood insurance is very expensive and the flood risk here is serious. If you can find a non-flood sweet spot, worth a look. 

I personally invest in the Seminole/Largo area, about 20 mins northwest of downtown St. Pete. High quality concrete block construction in non flood zones. Strong rent to price ratios relative to St. Pete. Good school districts, VERY close to beach with no flood risk. I find it easier to cash flow and get a high quality property with more land in Seminole/Largo while maintaining close proximity to St. Pete and very close proximity to the beaches.

Hope this helps!