Is it worth looking here?

[Amit Doshi]

Hello, 👋🏾 my wife and I have recently began educating ourselves the last few months with real estate investing ie books/podcasts/this site. Everything we look at here in Tampa seems like the numbers aren’t even close to cash flowing. Should we focus a lot further out or out of state?

we have about $400-500k liquid we could use for investing but feels like we missed the boat by 3+ years. 

[Kristina Kuba]

@Amit Doshi

Hi Amit,

Like many of the responses you see, Tampa is an appreciation market not a cash flow market. There are 4 ways of gaining financially on a property. Many people are just looking at cash flow which will be difficult with rising prices and stubbornly high interest rates.

#2 Appreciation

#3 Equity Pay down

#4 Tax Savings

For #4, there is a tax loophole that you can legally take advantage of. You would have to substantially do everything for the short-term rental business including self managing the STR. You cannot hire a mgmt company for this loophole. And after doing a cost segregation study, you can drastically reduce your W2 taxes to almost zero. Always consult a CPA, I can recommend you one.

So zoom out a little, and see the big picture. Most of my personal rental properties have doubled in value since 2018 and they will likely double again in the next 5-7 years. With tax savings on your W2 it can be very advantageous for wealth building based on your situation.

Happy to help. Reach out if you have any questions.