Long distance Investment property as first home purchase

[Trace Adams]

Hi all! I am new to this site/forum but have been listening to the podcast and am learning so much. I want to run something by you all and get your thoughts. I am 27 years old and currently live in Denver, CO where I am pretty much priced out of the market. I currently rent with my girlfriend. I do have enough money saved up for a down payment on a house in a cheaper city, just not Denver. We love Tampa and could definitely see ourselves living there in 3-5 years, but right now is not a good time for us to move. I am thinking about buying a rental investment property in Tampa in the $300K range that I can cash flow from and build equity in, while still saving money by renting here. Then the idea would be for us to move there in 3-5 years into that property. I know I would have to put down 20% which will be tough but I can probably do. Any other things I should think about?

[David Ramirez]

Quote from @Trace Adams:

Quote from @David Ramirez:

Hey @Trace Adams, 

Finding a property that cash flows with today's interest rates in Tampa is tough. Tampa Bay is an appreciating market rather than a cash-flowing market. Prices in relation to rents are out of control, so shooting for a 1% rule just won't cut it.

With that being said, you can still find cash-flowing properties in the surrounding areas of Tampa. Pasco and Polk counties would be your best options for that. We still find cash-flowing properties in Central Florida but through seller financing. We have done three of those so far.

I would love to connect! Good luck

Thanks David, I may connect with you on the side in the coming weeks. When you say it is tough to find a cash flowing property, are you assuming it’s rented out long-term or just in general? Based on my research it seems like with a little rehab and managing a short term rental effectively, short term would likely cash flow more in a market like Tampa. 

Appreciate the info on locations! I will be in Tampa in a couple weeks and plan to explore neighborhoods a bit more.

Trace 

No, I'm not assuming it's already rented out, just in general. The short-term rental market is saturated here in Tampa. Even if you can cashflow as a short term you have to have an exit strategy in case things go south. I would at least have it break even as a long-term rental before thinking about STR.