South Tampa advice

[Forrest B.]

BP,

I'm looking for some advice on South Tampa. General guidance for people with families is to stay between Gandy & Kennedy. However, I see a lot of rental properties for sale south of Gandy, both on the MLS and on bandit signs. An example property listing:
-Duplex posted on MLS for $95,000
-Advertises 10% cap rate (not reading too seriously about this)
-Gross annual rents $14,400 (assuming rents are $1200 per month)
-Taxes: $1356
-Insurance: $525
-Water/Trash: $1200

Each unit is 2/1, approx. 1450 sq. ft. States that units were renovated in 2010.

Question is not whether or not this is a good deal (numbers above were simply a part of the listing--I'd rather decide on if this area is worth investing in before I decide what price I'd pay). My question is: what am I missing about living below Gandy (other than bad schools)? Is $600 a month a reasonable rent for similar properties in the area? I'd love to discuss in more depth with someone who is knowledgeable about this area of Tampa.

Forrest

[Eric Odum]

Two reasons Gandy is a great divide....flood areas and history of MacDill base/port housing.

The historic Port of Tampa attracted a lot of the riff raff significant port areas typically attract (not really the case anymore as few ships come in and out of there now and definitely not sailors like there used to be 100 years ago...but homes were built and the culture initiated).  AND, there was significant affordable housing built to be close to the base.  The area has definitely improved.  You are seeing a lot of McMansions being built on the East side and tear downs on the West.  I would not worry about the residents as much any more as much of the area is definitively gentrifying.    I think it is becoming a really nice area, but personally, b/c it is the lowest lying area in Hillsborough county, I would be extra cautious. Like 75% of the land south of Gandy is in a Flood Zone..that coupled with  the density of affordable housing that still exists will continue to keep prices below typical South Tampa prices.