Is this the time to focus on Tampa STR's?

Question

Let me start by saying that I've always loved the area, for vacationing and otherwise, but never thought about investing there. The recent hurricanes got me thinking about the future of the area. While I do think that extreme climate is something we all will have to contend with, I think the area will always be popular as a vacation destination.

Having said this, I am thinking about looking for a STR in the area. I intend to pay all cash, thereby removing the requirement for flood insurance. Any other ideas from the Tampa folks as to what areas I should focus on, contacts in the area, or just any other ideas in general about buying a STR in Tampa?

Thanks!

P.S. - In no way do I mean this to be insensitive, given everything that happened over the last month and the suffering that people are experiencing right now. If it comes across that way I apologize in advance.

Nick Velez · Answer

@Sam Faas

I won't knock you for paying cash but just because you don't need flood insurance, does not mean it's a good idea to not have it. There were plenty of people not in a flood zone that wish they purchased flood insurance.

In any case, I am sure that market will rebound shortly and things will go back to how they were. I HIGHLY suggest connecting with a local expert such as @Josh Green. He owns and operates several STR's in the area and has it down to a science.

Max Ferguson · Answer

I don't think this is insensitive, I am curious about it as well. We have always looked at tampa and have friends and family there.

From what gathered when I spoke to the investor agent I have there, most STR candidates on the retail market were only breaking even. This was a few months back. If you can secure insurance that doesn't kill the deal, and you find a good deal, then I would assume all works.

For anywhere you decide to invest in, paying all cash is going to net you a good return. If you plan to buy there to rarely use as a vacation home, then I think it would make sense. On a pure investment scale a mid term or short term in the midwest (omaha, KC, etc..) may net you better returns. I'm sure others have input on markets to focus on that may be far better than the ones I mentioned above as well.

Let us know what you decide on!

Alex Olson · Answer

KC is a great long term rental market for low taxes and landlord friendly. Also hard to miss on an investment here (with right corner or course ;) )

Is this the time to focus on Tampa STR's?

Is this the time to focus on Tampa STR's?

Most Popular Reply

3 Replies