Tampa...trends, tactics and tips ?

Question

Just curious about the Tampa market area and would appreciate hearing what people with "boots on the ground" are seeing in that marketplace for trends in the housing market (days on market, months of inventory etc.) , pricing, rents / vacancy rates, fix n flip opportunities, buy & hold strategies, buying smaller apartments (4-12 units)...I am seriously considering investing in this marketplace since pricing in my market area is through the roof...this would be long distance for me but I have knowledge of the area having gone to college there in a previous life and have more than a handful of strong contacts as well...an feedback would be greatly appreciated, have a good weekend everyone !

Dave Bingham · Answer

Pinellas is hot right now. Lots of new units have come online and existing complexes are going for asking price or above with very few DOM. There is some employment growth but I'm not sure it's going to be enough to lease up existing and new units. Now I'm not opposed to having units there but I'd limit my exposure to 4-12 like you said until I knew better the pulse of the direction from better data.

Tampa is a much softer market presently. There are strong areas mainly in the path of progress and others that are mature, stagnant or even declining in value due to various reasons. Seminole Heights is an area that I can tell you off the top of my head that is experiencing some gentrification.

Here's a few links that you might find useful:

http://www.tampaedc.com/

http://www.tampagov.net/economic-and-urban-development/programs/community-redevelopment-areas

Daniel Miller · Answer

@Dave Bingham gave a very good current update of our area. Pinellas is tough right now. Most of the inventory online has been for 6 months or more. Mulit-family sellers are asking for big money right now and for the most part are getting it.

22nd Street South, south of Central Ave is going through a similar gentrification. Federal and State funds have been used to spruce up the area and Midtown is currently being given a major facelift. 10 years will tell if the effort was worth it.

Good time to be a multi-family seller. Artificially low interest rates have boosted the values of all income producing assets and properties (across all industries) while investors accept lower and lower returns due to the extended availability of cheap, cheap money.

Dave Bingham · Answer

@Fred Conway

Hi Fred. I'm not really sure what you're asking in your first question. I'm guessing you're asking what is behind the gentrification. If that is the case there are a few factors but first know that I'm more of a multi-family guy instead of individual homes but the trends are similar so I'll take a stab at prognosticating.

It's an area that is being redeveloped as part of the master plan. Investors are helping as well since the government has a vested interest and is actually finishing projects to create a nicer area. As far as what will happen in 5-10 years, honestly who knows.

That's not necessarily a complicated question but it is complex as the number of variables are myriad. Fortunately the variables are almost always the same in each up and coming or area being gentrified. For Seminole heights specifically the surrounding areas are putting pressure in the form of what I call crime n' grime. This doesn't appear to be slowing down due to the redevelopment of SH. What happens out in these areas basically breaks down to choices and opportunity. Presently to my knowledge there isn't much opportunity here so the choices that will be made will probably contribute to decreased values.

The other thing that gives me pause is locals that do not practice real estate as an occupation or even as a hobby are getting in on the action. While it is nice that the area is becoming "nicer" more quickly there is some questionable workmanship occurring and a possible glut from oversupply.  I think this ties into your "how fast do I see it happening" question. the real answer is I don't know but it's far enough along in the process that it gives me great pause to buy there.

However; the oversupply shouldn't phase you if your a long term holder but if you favor a rehab and out you'll be facing a great deal of competition and downward pressure on a possible sales price. I have no idea what the average days on market are in this area but I've been told they are low by other investors I know who invest in the area. Check with @Doug Merriott  I know he's in Pinellas but he may be able to help you or know a realtor over here that could give you more detailed and possibly accurate information than I could. Good luck!

Walter Pape · Answer

Hey Bill,

I wanted to reach out to your post and give you a general feel on what I am seeing in the Bay Area. Tampa has it's good areas and downtown is putting in 10,000 units in the bext couple years. Rent for 2/1 going around 750-1000 and I haven't seen a lot of multi-family in pinellas. If there are specifics that you are looking for PM me.

Walter

Fred Conway · Answer

@Dave Bingham thanks for answering my question, that's what I was looking for.

Fred Conway · Answer

@Dave Bingham what is your thought process behind the gentrification of seminole heights? How fast do you see it happening and what do you think it looks like in 5-10 years?

Bill Fennelly · Answer

Thank you for taking the time, truly appreciated, happy holidays !

Tampa...trends, tactics and tips ?

Most Popular Reply