The Challenge with Long Term Rentals in Tampa

[Dillon Cook]

In the Tampa Bay real estate market, achieving positive cash flow from long-term rentals is quite the puzzle this year. With rising interest rates and property insurance costs outpacing rent and wage increases, investors are feeling the pinch. Making hefty down payments (30-40%) to get a trickle of cash flow works. But is this sustainable, especially with the potential of a recession? And what about the long game, banking on good deals now and then cash out refinancing when interest rates dip?  Anyone seeing something different in a nearby market?

It does seem Tampa's market remains attractive to investors, with around 26% of closings coming from investors.