Hey Tampa bay investors. I have been doing some research on the Tampa Bay Area for some time now and I wanted to get some local perspective on that area. Like, what is deal flow like? how are some of your typical rentals performing? How fast is your tenant turnover? What are some of the problems you run into investing in that area, like sinkholes or flooding? How is the dynamic between local insurance companies when dealing with those problems? Some local perspective and opinions would really be helpful to get a better grasp of the area.
Hello @Jamey Newman , I am in Tampa and I can say floods are a big issue during the rainy season (November Though October) especially if you are close to the coast. Florida is flat so if water gathers up it doesn't have anywhere to go. As for sinkholes, they are also a big issue. A sinkhole almost swallowed my one of my favorite record stores off of Central Ave. in Saint Petersburg a few years back. I am also an insurance agent by trade and we have what we call a "Bermuda Triangle" if you will, for sinkholes it is located in the Valrico/Dover area. What I will say, unlike the rest of Florida, the Tampa Area has been spared for hurricanes for the while. The reason is that if they come thru land they loose steam by the time they get to us, and if they come through the Gulf they will have to make a weird turn which most hurricanes don't make. Now about rental performance, I would say that most of the perform fairly well, between 15%-20% Cap. At least that's what I aim for when I wholesale a property to a Buy/Hold investor. As for as deal flow, I would say that as long as you partner up with the right people who can bring you deals, your pipeline of deals should never run dry. There are plenty of distressed sellers and distressed properties to go around. Anyways hope this helped. PM me if you need any additional assistance.