Tampa Area Investing - Seffner?

Question

Hello BP,

I am looking into markets for LTR.

My husband and I started in Tampa, but lately we've been looking outside Tampa for lower price points.

Are you investing in Seffner / Mango, FL areas? Are you familiar with someone who is having success?

Is there rental demand there?

It seems it would attract some renters due to the close proximitity to Tampa. Although it does look a little "sleepy".

Are there areas to avoid?

Thank you for any advice!

David Ramirez · Answer

Hey Michelle, I have not invested in those areas yet, but since you mentioned you wanted to look more outside Tampa, I recommend the Lakeland / Winter Haven area. I see much growth coming to the east of Tampa Bay because of low inventory and high prices. Developers are planting their seeds in those areas, which is always a good sign for small investors. Good Luck!David

Jared Prevost · Answer

Hi Michelle,Definitely lower price points to the east of Tampa. With Tampa having the highest increases in rent of any metro in the US you can bet there is a huge spillover of rental demand to areas within 30 minutes of Tampa, including Seffner and Mango. It seems to me that east of Tampa is much more of a middle-class residential sprawl and certainly is a bit "sleepy". Unfortunately, I can't provide too much insight into places to avoid. I will say, I think it's a good long-term bet, however, I doubt that appreciation will be as high as anything in Tampa or west of Tampa closer to the ocean. Personally, I think the biggest driver of appreciation in Florida outside of business and tax friendliness is the lifestyle and inland Florida is not nearly as attractive in that regard. I would honestly look to invest somewhere in Pinellas if you want a lower price point that's got more appreciation upside.

Michelle Reid · Answer

@Jared Prevost good points about the lifestyle factor being the main driver.

Dillon Cook · Answer

Hit those areas up! It is a very good 5-10 year play based on population trends. Proximity to Tampa (Brandon/Riverview) and Lakeland and being right off i-4 are going to be great long term. There is strong rental demand there.

Dillon Cook · Answer

I think your response assumes the investment of a SFH. Most investors are looking at multifamilies right now.

Edwin Epperson · Answer

@Michelle Reid hello fellow "Tampa-ite"! There are several really go spots for LTR's (1-4 units specifically) in the central FL area. I highly recommend Lakeland FL. It's where several investors I have funded have purchased/ refinanced 2-4 unit SFH. Lakeland is about 35-45 minutes due East of Tampa and about 45 - 1:15 due West of Orlando. Right along I-4 it has great commute times and purchase prices are still reasonable considering cash flow. You should easily be able to hit the 1.25 - 1.5% rule on your cash flow. North of Tamap is growing very fast as well. North, past Wesley Chapel near the Dade City exits, are booming and there are quite a few 2-4 unit developments happening in the area as well. Best wishes and much success!

Michelle Reid · Answer

@David Ramirez thanks. I have been looking at those areas as well. Good to hear you're seeing some growth there.

Michelle Reid · Answer

@Michael Haynes hmmm...I don't think I know of this Zillow search you speak of.

Michael Haynes · Answer

Hello Michelle Reid from MA, I paid $175,000 Cash, in my Target Area in Valrico, Florida after a year before Covid of Searching every day for 3/2 houses with pools and then Condos and Townhomes. I got a like new, 1536 sq. ft., 3/3 Townhome with one car garage in a 17 unit, gated Community with a pool big enough to do laps. Built in 2016 and we just had all new roofs put on with the HOA fee, so, I can live here for ten more years and then Sell without having to worry about the condition of the roof to qualify for Home Owners Insurance. Everything on the North side of Brandon Blvd. or Hwy 60, after the main area in Brandon, leading to Valrico, is like all clean and new. Your kind of stabbing in the dark to be doing a Search on BP for a good place to invest from MA. Do you know how to do a Search on Zillow? Do you know how to use Google Map? I did a Search for just properties two years ago in the whole State of Florida on Zillow and there was not one lot for less than $100,000. Your asking about Seffner. Do you know who lives North and South of Martin Luther King Blvd. in Seffner? The age and sizes of houses that were built there 50 years ago? Find your Target property and look at it with Street View on Google Map. Do you like what you see? Is the asphalt in the street still there? How about your Target property. Does it have a driveway? Is it surrounded by Oak trees that cover the roof and need thousands of dollars worth of trimming or removal? Is it Woodframe or Block? Was it ever Termite tented? Is it fenced? This last year I noticed that the Flippers were making the insides of all the 100 year old, Woodframe houses, look like new with really bright, white and gray interiors and doing absolutely nothing for the yard. Do you know what it is like to pull permits to do any work on houses now in Florida? Do you have a Team you can trust? Why Florida?

Michelle Reid · Answer

Thanks @Dillon Cook!