Tampa or Orlando That`s the question

Orlando, Florida
Buying & Selling Real Estate
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Tampa or Orlando That`s the question

Petronella Kerssens
Member since 2023 路 21 posts 路 16 votes

Hey fellow Investors!

I'm gearing up to make a substantial investment of around $200k in Florida's real estate market in 2024, and I could use your insights.
I'm torn between Tampa and Orlando.

So, folks in the know, I'd love your input! Which of these Florida locations do you think holds more promise for investment, considering the current market trends? And within these areas, what property types would you recommend diving into for a solid investment?

Your advice would be greatly appriciated. Thanks in advance!

Renate (Petronella) Kerssens

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Kim Meredith HamptonBusiness Member
Real Estate Broker 路 St Petersburg 路 Member since 2014 路 2k+ posts 路 2k+ votes
2y

Renata 

As many have said, you can鈥檛 go wrong either way. I have offices in both locations and own properties in both Orlando and St Pete/Tampa. Although, I will say I lean more towards the Tampa MSA. The unemployment is low, has the highest occupancy for office buildings across the US, which means the area is fiscally very healthy. You can enjoy both Tampa and Pinellas counties right across the bridge, lots of beaches, water activities, all kinds of events happening, pro teams like the Rays and Bucks and no state income tax.

Happy to help talk through what your buy box would look like

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  • Joseph Stern
    Investor 路 Tampa, FL 路 Member since 2020 路 287 posts 路 152 votes
    2y

    @Petronella Kerssens Hey there Petronella, both markets have fantastic upside and some of the fastest growing markets in the country with tons of commercial projects going on and people moving there everyday. I live in and invest in Tampa so I鈥檓 biased but you truly can鈥檛 go wrong in either market, Tampa is going to be a little better on the appreciation side and Orlando will offer slightly better cash flow opportunity whether it鈥檚 multi family, single family or short term rental. Tampa is very relaxed when it comes to short term rentals, not sure about Orlando.

    That being said, what is going to make or break the success of your investment is your team in those markets. You could choose the absolute best market in America with the best upside, best deals, best location but if you have weak team members such as a broker, contractor, lender, and property manager your investment will surely experience hardships. On the flip side, you could go to the worst city in America like Detroit was, in the worst neighborhoods but if you have experienced team members you will be much more likely to make money there!!

    Location /neighborhood are the most important aspects of an investment of course but my point is choose the market where you feel you have the strongest team around you and best boots on the ground. This is where you will find the most success. Just my 2 cents.

    2Reply
  • Petronella Kerssens
    OP
    Member since 2023 路 21 posts 路 16 votes
    2y

    Thank you so much for your 2 cents and I appreciate your input. When it comes to Tampa for multifamily properties what areas would you recommend. For singel family homes I like New Tampa allot. What area would you suggest for single family homes. 
    I totally agree that you should surround yourself with a great team. Do you have any recommendations for a property management company?

    Thanks 馃檹 

    1Reply
  • Joseph Stern
    Investor 路 Tampa, FL 路 Member since 2020 路 287 posts 路 152 votes
    2y

    For Tampa MFH I recommend West Tampa, Seminole Heights, and South Tampa. For SFH New Tampa is good if you're looking for newer builds, I also recommend Carrollwood and Citrus Park for SFH as well as the others I stated.

    Yes I have several recommendations, if you want to PM me I can send them over!

    1Reply
  • Raymond J. RodriguesBusiness Member
    Lender 路 Miami, FL 路 Member since 2017 路 1k+ posts 路 797 votes
    2y

    Hi @Petronella Kerssens, if you鈥檙e looking for a property management company in the Tampa Bay Area, I recommend reaching out to @Josh Green. He is also an investor and investor focused real estate agent in the area. He鈥檚 helped quite a few of my clients in the past and I鈥檓 sure will be a great asset to you as you begin your journey. 

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  • Chris Rich
    Property Manager 路 Orlando, FL 路 Member since 2023 路 107 posts 路 64 votes
    2y

    @Petronella Kerssens I'd agree with a lot of what Josh said.  I don't think you can go wrong with either market... both Tampa and Orlando are top 10 growing cities.  We are a Orlando based LTR PM company, but we manage properties throughout Central Florida.  Orlando itself is a little tough to find well cashing flowing without BRRRRing.  A lot of our investors are looking at new builds in Ocala and Palm Bay because of the growth an appreciation, but they are getting a little saturated.  Within the immediate Orlando metro, you can see a pretty wide range of rental rates depending on neighborhood and property class. Are you looking more for cash flow or appreciation?  

    1Reply
  • Michael DiossaPro Member
    Investor 路 RI 路 Member since 2023 路 192 posts 路 163 votes
    2y

    I lived in Orlando I liked it, but based on how things been going, Tampa seems like the better option.

    0Reply
  • Chris Rich
    Property Manager 路 Orlando, FL 路 Member since 2023 路 107 posts 路 64 votes
    2y
    Quote from @Michael Diossa:

    I lived in Orlando I liked it, but based on how things been going, Tampa seems like the better option.


     What were the pros / cons for you that made you prefer Tampa?

    0Reply
  • Matthew LamoreauxBusiness Member
    Real Estate Agent 路 Orlando Florida 路 Member since 2023 路 24 posts 路 17 votes
    2y

    @Petronella Kerssens I agree with all things stated above, although Orlando is tighter on short term rentals (Orange County specifically). That being said both markets are growing and will continue to grow. Just as some updates to the area as food for thought. Orlando just opened Brightline high speed railway (Miami-Orlando with 2 stops i believe). The last phase of that line goes into Tampa not sure about finishing timeline there. Also Universal is due to open its new park in Orlando summer of 2025. This park not only brings in more tourist but also due to add 15-20k permanent jobs in a market that housing wise cant handle that big of an upswing. The expansions in the area are already linking Tampa to Orlando via I-4 causing huge traffic issues but hopefully that gets slightly better as they expand the express lanes from Orlando to Tampa. Lastly, I believe i just read and article about Tampa International expanding to more international flights but don't take that as written in stone. Hopefully this helps you. 

    @Petronella Kerssensundefined

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  • Logan Padilla
    Lender 路 Los Angeles 路 Member since 2023 路 19 posts 路 7 votes
    2y

    There are great opportunities in every market, so it's really about finding the right place. To arm you with a little more knowledge, the average 5-year rate of appreciation for Tampa is 9.2%, while the average 5-year rate of appreciation for Orlando is a little lower, at 8.56% That said, Orlando is a tourist hub, so my advice would be if you're looking for something short-term (AirBNB), finding a place in Orlando around the attractions could be the way to go, but if you're looking for a more long-term investment, Tampa may be your best bet.

    0Reply
  • Chris Rich
    Property Manager 路 Orlando, FL 路 Member since 2023 路 107 posts 路 64 votes
    2y
    Quote from @Logan Padilla:

    There are great opportunities in every market, so it's really about finding the right place. To arm you with a little more knowledge, the average 5-year rate of appreciation for Tampa is 9.2%, while the average 5-year rate of appreciation for Orlando is a little lower, at 8.56% That said, Orlando is a tourist hub, so my advice would be if you're looking for something short-term (AirBNB), finding a place in Orlando around the attractions could be the way to go, but if you're looking for a more long-term investment, Tampa may be your best bet.


    Hey Logan, what's your source for the appreciation data?  I saw an article earlier in the year that had Orlando at an average of 10.7% appreciation over the last decade, according to Neighborhoodscout.  I'd love to check out what sources you have!

    Also, STR can be beneficial, but it is also highly saturated in the park areas. I've had a bunch of sales calls in November with owners wanting to transition their STR to a furnished LTR because the STRs were not performing as well as they expected, or in some cases, not covering the mortgages.

     

    0Reply
  • Devin JamesPro Member
    Developer 路 Orlando, FL 路 Member since 2018 路 502 posts 路 306 votes
    2y

    Hey Petronella Kerssens, I currently live & invest in Orlando so I may be biased. But as others have said, you cant go wrong with either option. If you have any questions about Orlando, use me as a resource.

    [email protected]
    1Reply
  • Logan Padilla
    Lender 路 Los Angeles 路 Member since 2023 路 19 posts 路 7 votes
    2y

    @Chris Rich Good point. An overly-saturated market should certainly be taken into account. I always suggest everyone run an AirDNA report prior to entering into any STR market.


    My sources for appreciation are an aggregate of FRED, US Census, BLS, JBRG, NAR, and MLS data.

    0Reply
  • Chris Rich
    Property Manager 路 Orlando, FL 路 Member since 2023 路 107 posts 路 64 votes
    2y
    Quote from @Logan Padilla:

    @Chris Rich Good point. An overly-saturated market should certainly be taken into account. I always suggest everyone run an AirDNA report prior to entering into any STR market.


    My sources for appreciation are an aggregate of FRED, US Census, BLS, JBRG, NAR, and MLS data.

    Gotcha (re the sources). Data can be tough sometimes because the numbers can change source to source.  And I would agree, definitely want to do you your research on STR before buying.  
    0Reply
  • Matthew LamoreauxBusiness Member
    Real Estate Agent 路 Orlando Florida 路 Member since 2023 路 24 posts 路 17 votes
    2y

    @Chris Rich The REAL short handed market in Orlando is the MTR's Fully furnished and not, with the market for buying and selling slowing here many not wanting to commit to another full year on their current lease and then of course those professionals traveling through or moving to the area that don't want the full year commitment. The market for those MTR's run fairly short.

    Matthew Lamoreaux Realtor
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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker 路 St Petersburg 路 Member since 2014 路 2k+ posts 路 2k+ votes
    2y

    Renata 

    As many have said, you can鈥檛 go wrong either way. I have offices in both locations and own properties in both Orlando and St Pete/Tampa. Although, I will say I lean more towards the Tampa MSA. The unemployment is low, has the highest occupancy for office buildings across the US, which means the area is fiscally very healthy. You can enjoy both Tampa and Pinellas counties right across the bridge, lots of beaches, water activities, all kinds of events happening, pro teams like the Rays and Bucks and no state income tax.

    Happy to help talk through what your buy box would look like

    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America鈥檚 Hottest Markets
    Compass | St. Pete514 Reviews
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  • Devin PetersonBusiness Member
    Lender 路 Sarasota, FL 路 Member since 2022 路 2k+ posts 路 667 votes
    2y

    I believe Orlando may be a bit saturated with people who have a similar strategy and goal in mind so the competition may be higher. Tampa I feel like has some more versatility to strategies between LTR, MTR, and STR. - Feel free to connect if you have more questions on the Tampa/St. Pete markets!

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  • Shawn McCormickPro Member
    Realtor 路 Central Florida-Orlando 路 Member since 2014 路 1k+ posts 路 892 votes
    2y

    @Petronella Kerssens. You've gotten some good info so far. I would caution on thinking Orlando is only about tourism though(the whole state is really). There is much more going on here than that steryotype. The hedge funds and International investors have been pouring into both metros and both are consistently on every list as growth hubs.

    As was mentioned, the Brightline will only enhance access to other major metros like Miami and Tampa, we are going to see much more growth in the space industry (again), not landlocked and not as vulnerable to hurricanes. One of the busiest airports in the country and it just expanded. Theme parks are still expanding and don't buy into the gloom about Disney and the political noise, that is a small bump. Clermont (just West of Orlando) is building a $2 billion athletic health and wellness community  (Olympus) with over 4,000 homes and retail to match. Lots going on here! Not downplaying Tampa, but I'm just more familiar with Orlando. 

    All of this info is predicated on what you want out of your investments, cash flow is tight statewide, so we've counted on appreciation for the last few years, which is down this year, but still well above the national average. I can pluck out a few areas that I would recommend specifically if you have an interest.

    Let me know if you want to dive a little deeper. 

    Best of luck to you!

    3Reply
  • Giuseppe PavonePro Member
    Specialist 路 Orlando, FL 路 Member since 2015 路 183 posts 路 83 votes
    2y

    @Petronella Kerssens maybe I overlooked it, but what type of investment are you looking to make? How are you planning to deploy that $200k? I agree with most that you probably can't go wrong either way, but are you looking for turn-key rentals? If so, what type? BRRRR opportunities? Fix & flips? Also, are you local to either market? If so, that could be a determining factor if you plan to manage yourself... closer is easier. Regardless it sounds like you've set yourself up to do well in either case. Just thinking if you know exactly how you want to use the funds may help in your decision. Happy to help if I can.

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    2y
    Quote from @Petronella Kerssens:

    Hey fellow Investors!

    I'm gearing up to make a substantial investment of around $200k in Florida's real estate market in 2024, and I could use your insights.
    I'm torn between Tampa and Orlando.

    So, folks in the know, I'd love your input! Which of these Florida locations do you think holds more promise for investment, considering the current market trends? And within these areas, what property types would you recommend diving into for a solid investment?

    Your advice would be greatly appriciated. Thanks in advance!

    Renate (Petronella) Kerssens


     Depends on what kind of rental you want to get. I own a short-term rental in the Orlando area and the market is super saturated right now; I wouldn't recommend that strategy there. One of my friends from a mastermind has properties in Tampa that he's had for quite awhile that are appreciating pretty nicely. I talked to my realtor in Orlando today and she said things are pretty slow right now there, buyers are getting more concessions for sure. That lines up with some properties I've been watching in the $400k range that had to cut $40k or more off list to get under contract. 

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  • Dillon Cook
    Realtor 路 Greater Tampa Bay 路 Member since 2014 路 219 posts 路 130 votes
    2y

    Both will benefit from the flying taxes in ~2025 lol.

    Both will benefit from the Brightline high speed train in a couple years.

    Both have ports which cruises can take off from.

    One has amazing beaches and Busch Gardens, the other has woke Disney World, Universal Studios, and Seaworld. 

    Tampa has MacDill airforce base, several universities, and Moffitt Cancer Center.

    Not sure as sure about what big businesses Orlando offers to be fair on this one.

    0Reply
  • Kelly Boulton
    Realtor 路 FL 路 Member since 2022 路 48 posts 路 24 votes
    2y

    As many others have said, both markets are great.  I am in Orlando, but focus on investments throughout Central Florida.  I would say that the specifically the Orlando and Tampa markets are becoming highly saturated, and that I wouldn't expect the growth to continue at this rate for much longer.  Personally, I am focusing on the corridor between Orlando and Tampa.  Polk, Lake, and Hernando Counties.  As both of these cities continue to grow, more and more focus is being put on developing the areas that surround these cities.  A perfect example would be Lakeland, Fl in Polk County.  Right in between both Orlando and Tampa.  Another good example would be Ocala, Fl in Marion County.  It is a little further north than Orlando and Tampa, but is becoming more and more populated with new jobs, growth, and homes. 

    In these smaller, growing cities that are not necessarily as populated or popular yet, you have room for lots of appreciation, but you also get better cash flow opportunity, that you don't have to wait for.

    1Reply
  • Stephen Sherbin II
    Realtor 路 Orlando, FL 路 Member since 2023 路 14 posts 路 9 votes
    2y
    Quote from @Petronella Kerssens:

    Hey fellow Investors!

    I'm gearing up to make a substantial investment of around $200k in Florida's real estate market in 2024, and I could use your insights.
    I'm torn between Tampa and Orlando.

    So, folks in the know, I'd love your input! Which of these Florida locations do you think holds more promise for investment, considering the current market trends? And within these areas, what property types would you recommend diving into for a solid investment?

    Your advice would be greatly appriciated. Thanks in advance!

    Renate (Petronella) Kerssens

     Hi @Petronella Kerssens, Orlando I would probably focus on the PadSplit model, LTRs are difficult to find on market, though there will be deals off-market. STRs are saturated at smaller sizes but heavily themed 6+ bed properties can still be great properties in that Disney Area. Really depends on your preferred style. Additionally, the surrounding areas are potentially better for those whom like the LTR model, especially if rents are similar to the bigger cities. 

    One thing I'd start with is what your personal strategy is, are you looking for cash flow up front, or long-term value after taxes?

    0Reply
  • Brandon P.
    Lakeland, FL 路 Member since 2018 路 243 posts 路 148 votes
    2y
    Quote from @Petronella Kerssens:

    Hey fellow Investors!

    I'm gearing up to make a substantial investment of around $200k in Florida's real estate market in 2024, and I could use your insights.
    I'm torn between Tampa and Orlando.

    So, folks in the know, I'd love your input! Which of these Florida locations do you think holds more promise for investment, considering the current market trends? And within these areas, what property types would you recommend diving into for a solid investment?

    Your advice would be greatly appriciated. Thanks in advance!

    Renate (Petronella) Kerssens


    Don't be afraid to look in the middle of these two growing cities, Lakeland is a great place as well. 
    0Reply
  • Chris Grenzig
    Property Manager 路 Orlando, FL 路 Member since 2016 路 479 posts 路 277 votes
    2y
    Quote from @Petronella Kerssens:

    Hey fellow Investors!

    I'm gearing up to make a substantial investment of around $200k in Florida's real estate market in 2024, and I could use your insights.
    I'm torn between Tampa and Orlando.

    So, folks in the know, I'd love your input! Which of these Florida locations do you think holds more promise for investment, considering the current market trends? And within these areas, what property types would you recommend diving into for a solid investment?

    Your advice would be greatly appriciated. Thanks in advance!

    Renate (Petronella) Kerssens

     @Petronella Kerssens the biggest thing I would be looking at is the supply levels for each market. Assuming you're thinking of some form of rental model, that's always been the biggest factor in rental properties. However, landlords and owners (myself included) have been getting reminded of how important that is. The last 12-24 months new supply levels have increased dramatically and you're seeing vacancy rates expand, rental rates flatten or drop, and days on the market rise. 

    Unfortunately, I don't have the data for this on hand to look at, but that's what I would be paying close attention to. However, just in general supply levels should be dropping way down in future years as new construction starts, especially in the multifamily space, have dropped off a cliff. So there are a lot of projects being completed right now and in the next year or maybe two, but the number of new projects being started right now is very low, so once these current projects finish up, the new supply levels will drop and absorption of new units should get better. Which in turn should help rent growth in 2-4 years from now assuming most other things stay the same. 

    You still have to worry about other things like job growth, population growth, unemployment, macro economic trends, etc. 

    Sorry it's no so much an actual answer (plenty of other people weighed in on that), but just another thought to consider as you look at it. 

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