Multiunit property in Tampa

[Ardijan Has]

Since I dont live in Tampa (yet), and not sure as to which areas are good/bad I was hoping I could get some feedback on this properlty listed on loopnet, any advice would be appreciated. Thanks!

Tampa property

http://www.loopnet.com/xNet/MainSite/Listing/Profile/Profile.aspx?LID=18603832&SRID=4322496116&StepID=101&jli=y

[Jon Holdman]

According to rentometer, 2BR units in that area should rent for about $650. That's $280,800 per year. Apply the 50% rule and you get $140,400 a year in NOI. The state NOI is $103,112 and mention there is an opportunity for improvement by raising rents and decreasing utility expenses. I'd assume that means some sort of bill back to the tenants.

I'd be curious about the area, too. I plan on doing some looking in this area next month. This one's above my price range, but looks like an interesting property. Appears to be something of a turn around play.

[Ardijan Has]

Def looks interesting, just looked at the property on trulia and the crime rate in the area looks quite bad!

[Doug Merriott]

I am not well versed in all of the bad parts of Tampa. When I have questions about certain neighborhoods I phone a friend who is a long time Tampa native (he grew up not too far from Annie). I do not need to make that call to recommend you keep looking a little while longer.

[Jaime Penix]

I have lived in Tampa for a number of years previously, but I have not focused on the details of the city in the past few years. But from my recollection that area was known for being a prostitute and destitute hotbed. I don't think the overall crime rate was the highest in the city but you will have a sizable transient type of crime there. I am not sure if the area of the property is just north of there or not. Looking at the map I think it will be included in the above described zone.

[Samir Abrahani]

That area used to be pretty rough but they have cleaned it up quite a bit over the years. A close friend of mine owns an apartment complex probably about 3/4 of mile from there and it runs around 90% occupancy rate. Close to the interstate and a short distance from the University of South Florida (Go Bulls)

[Dave Bingham]

This is a C class area at best Ardijan. I'd be looking for at least a 10% cap if you're looking to invest in these areas.

Look into these areas. You'll pay more but you're not fighting much in the way of negative externalities.

http://www.tampagov.net/dept_economic_and_urban_development/programs_and_services/community_redevelopment_areas/

[Eric Odum]

I agree with Dave. We missed on a complex not far from there several months ago. It went north of 10 CAP.

[Daniel Miller]

Not a good area man. Not anything you would be proud of owning. I went to High School and college in the general vicinity and there is nothing productive going on. Yes, apartments were cleaned up BUT that is due to the high number of foreclosures against apartment owners in the specific area. They overpaid for apartment buildings that would not cash flow from Day 1. Then, the economy went south, tenants lost work, and the property goes into foreclosure...it was REALLY bad in 2010-2012. There was a 48 unit complex completely vacant back then.

I would stay away from it. The demographics are not indicative of a thriving community and even though it is close to USF (I went there remember) that fact is meaningless. USF is almost grown out. Many students do not live on campus and are Tampa natives. There was a ton of student housing built recently. Do not let the potential of being close to USF tempt you. The area is one of the worst in Tampa and I would not be driving around there after dark...

Dude it's 1 block off Nebraska Ave. If you want to pay for fun on a Saturday night that's where you go...

[Doug Merriott]

Thanks for the insight on the proximity of USF. I thought that would be the shining light for properties surrounding the school.

[Eric Odum]

If you want student housing, look east of the University. South to Ybor and West to Florida Ave are quite rough.

[Patrick L.]

As other locals have said that's not a great area, I'd call it a D for sure. The proximity to USF is irrelevant as you will not be able to rent it to students in that area. It looks like market rent is more like $550 as they are still trying to fill the building running ads at $550 with a $250 security deposit (which is too low of a deposit in my opinion). It's already been remodeled and if there aren't people beating down the doors at $550 I don't see where the value ad would be. When my rentals around here are priced at market I always fill my vacancies in a week or less. The last 4 unit building I did I had all 4 units rented within a week at $550 each for smaller 1 bedroom units. It looks like they're targeting Section 8 tenants right now (I see ads on GoSection8 and other sites syndicated through there). My guess is the building is going to be full of whatever 'quality' tenants happen to show up with the move in money in order to get the vacancy rate low enough to sell it.