Los Angeles, CA · Member since 2017 · 22 posts · 3 votes
Hi everyone, I’m interested in the Tampa market, specifically North Tampa. I was wondering what the current market conditions are in this market, what ranges of cap rates are currently traded and as much information as I can possibly get. It seems like central and northern Tampa are almost completely detached from the south side of the dirty. The rents are much lower, and it doesn’t seem to be as strong in terms of appreciation potential etc.
Lender · Tampa · Member since 2020 · 29 posts · 15 votes
4y
@Victor Zeytin Historically, you can see a corridor of increased investment demand headed from downtown Tampa moving north. With this being said, there is a ton of demand throughout the general Tampa region, especially North Tampa, and I have not see anything sell at above a 4 cap in awhile. Most acquisitions are with bridge loans due to aggressive purchase prices. Rents have skyrocketed.
Real Estate Agent · Tampa, FL · Member since 2017 · 191 posts · 98 votes
4y
Hey Victor. Cap rates are hard to judge right now for several reasons. Most landlords here either do not keep or hide their maintenance numbers, especially when they are selling property. Another reason is that most agents, unfortunately, do not know what they are doing when it comes to properly marketing investment properties. Good (and truthful) agents are hard to come by at least when it comes to the investment space.
My best guess for North Tampa (i'm guessing you mean the Sulphur Springs and surrounding areas) is probably 7-9 cap. Other, more attractive, areas are probably at 4 or less when considering maintenanace and capex.
Real Estate Agent · Tampa, FL · Member since 2018 · 43 posts · 39 votes
4y
The CAP rates can go anywhere from 6% and up for a C+ area and 3-4% CAP for A/B+ locations. Inventory is low, a lot of properties are overpriced and do not cashflow but there are still good deals out there. You just need a good agent to sort through all the bad deals. If you have any questions regarding the Tampa area and would love some inside knowledge feel free to reach out. Good luck with your search for an investment property!
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
4y
@Victor Zeytin, as noted cap rates are anywhere from mid-2s and up. But that is true for just about all major markets in the sunbelt. And while cap rates have a definition, they are still not clear cut. Which real estate bill are you using? Whose insurance cost and maintenance costs?
And then your get prime areas versus rough areas, small multi versus institutional sized assets...
Lender · Tampa · Member since 2020 · 29 posts · 15 votes
4y
@Victor Zeytin Historically, you can see a corridor of increased investment demand headed from downtown Tampa moving north. With this being said, there is a ton of demand throughout the general Tampa region, especially North Tampa, and I have not see anything sell at above a 4 cap in awhile. Most acquisitions are with bridge loans due to aggressive purchase prices. Rents have skyrocketed.