@John Peter
Here my thoughts: Tampa home prices have grown exponentially in the last 2 years. Will this break neck rate continue? Absolutely not. Are we seeing a softening market? Yes
Now it depends on what your goals are.
Overall, rent is stable and still increasing in some areas of Tampa. Here is a an article discussing Tampa rents - Florida, Tampa Bay rent prices on the rise while other big metros slow
STR (airbnb) - We are seeing a softening in occupancy levels and ADR (average daily rate) as the American confidence in the economy continues to decrease and we are entering a weird stalemate between inventory and interest rates. If you want to buy an Airbnb, make sure it will cash flow or break even as a LTR before you proceed. You don't want to buy an investment property solely based on STR projected income and not run your LTR numbers as a backstop.
LTR - Okay so let’s say there is a 10-15% correction. Are you keeping your rental for 7+ years? You won’t even feel it. Rents continue to rise (albeit at a smaller increase) and slower but steady appreciation is expected especially in Tampa proper (city of tampa limits). I would consider Tampa an appreciation market, not a cash flow market. Research into Gas Worx, the development will create a walkable neighborhood in Tampa’s urban core, providing for pedestrian and bike traffic as well as green space. The first phase is slated for 2024 and anticipates 510,500 square feet of office space and 140,200 square feet of retail space. Also dig deep into the $3.5 billion water street project, backed by Bill Gates.
I would stay away from condos and townhomes if your primary goal is a LTR or STR. Two reasons:
1) Since there is such lax STR regulation, HOAs and condo associations in Tampa and Florida are coming down hard on STRs and they are also going a step further and putting a max percentage of units that can be rented long term to non primary occupied. Also, some want detailed info and registration of your LTR tenant and for the homeowners association to approve them prior to placement.
2) If you are looking at the Tampa urban core, SFR appreciation heavily beats condo/ townhome appreciation over the last 5 years. Tampa Bay is landlocked in 3 different directions by water, and lack of land is what keeps the Tampa market somewhat stable even while heading in a potential deep recession by next quarter.
You mentioned in your post that you have concerns about maintenance issues and costs. To answer your question… interview a few agents and ask them if they own STRs and LTRs and who THEIR team is. . An investor friendly real estate agent will have a roldedex of people that are well priced and reliable. For example on my properties my lawn guy is $25 a cut and all I do is text him and venmo him. Same with power washing roof/ driveways for $200 once every 2 years to keep our rental fresh. These are the contacts you need in your phone. It makes life super easy and takes only a few minutes a week for managing multiple properties. If you have the right people in place, running a SFR or multiple properties will not be difficult.
Feel free to reach out if you have any questions. Best of Luck!
