Texas moving to Tampa

6 Replies

I'd like to think of myself as a seasoned investor in the San Antonio, TX market.  I went to college for real estate finance at UT - San Antonio, inherited a dozen rental properties from my dad at 19, lending private funds at 22, learned how to wholesale at 23, started flipping at 24, owner financing at 25.  

But for some reason I feel really uncomfortable getting out of my comfort zone going to a very sophisticated market such as Tampa Bay. I hear too many new investors reading books about how, "you can only buy at 70% of an ARV", which I've never really paid any attention to. I know that the competition in Florida is intense, my uncle has been doing it in Ft. Lauderdale for twenty years.

I'm moving down for my future finace, if she wasn't the most beautiful woman I've ever met I wouldn't even consider this.  She has a new job opportunity and I told her I could run my business anywhere...  So now, with foot in mouth, I'm actually getting scared about what I'm getting into.  I'd like some BP opinions on what to look for/look out for.  

- What type of margins should I be looking at for flipping houses? In Texas I can buy at better than 70% of ARV including repairs. I don't do a ton but when the Mrs. starts getting irritable I have to get a project to get me out of the house for a month or two... I like the historic-add value properties. What is a competitive percentage to offer at in the Tampa Bay market?

- If I was going to buy a rental, where can I get a decent 4-plex?  Multi-family is crazy cheap in San Antonio so I'm trying to gauge if I should just keep my money there or actually look at buying and holding here

- Are there any Florida specific laws I need to be aware of when seller financing a property?  I typically hold my notes for a year and then sell them.

- I do spend a decent amount of money marketing for property myself.  I don't move on everything but

       - are assignments more preferable because of the stamp taxes?

  - are there good or bad people to talk to about deals I have under contract but would       rather sell off

- As a private lender, what type of rates and terms are in the market?  I'm rethinking my program as the foreclosure laws are WAY different than Texas (you can typically foreclose in less than two months).

Any help would be super duper appreciated!  If you have any Texas specific questions absolutely shoot me a PM and I'll be more than happy to advise in any capacity I can!!!!

Don't know Tampa at all, but @Patrick L. is active there, and knows maybe a thing or two.

@Ryan Harthan Tampa is a pretty big area, the market can vary drastically from one neighborhood to the next.  Where specifically are you planning on landing?  I'm over in North Pinellas, I'd be happy to get together to show you around town.

Rob

@Ryan Harthan I agree with @Robert Curls about Tampa being a big market and different from one area to another. I'm just East of Tampa and know that directions pretty well if you'll be dealing out in Brandon/reverview/Plant City. The Tampa market has many different REIA meet ups and most are close to free with very welcoming people. I think once you attend a few you'll feel at home.

I'm here in Tampa. THe flipping market in the hottest areas is really tight. Tons of competition. You can not wait for deals to hit the MLS you need to have boots on the ground/marketing of your own to find them.

If you wait for MLS deals your margins will be narrow and most people are doing it on a 'gross' profit rather than % profit right now. I.e. 80% of cost to value is being done by some more... ambtious? impatient? investors.

MFU are hard to find in the immediate Tampa area (or at least the nicer neighborhoods) since most of them get torn down for townhomes in the last few years. You can still find them in B-/C neighborhoods. Duplexes you can find in some nicer areas still. However if you look to the beaches in St pete you can find 4plexes and triplexes etc that would do really well as air bnb/vrbo/seasonal type rentals. 

Most wholesalers are going on assignment around here unless it's necessary not to.

I know several people who would take wholesale deals off your hands. Some are wholesalers that would help you get them to a final buyer, some would just purchase it themselves. Just depends on what the property is. 

And yes... there are several people I'd avoid....

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