How is the Multifamily Market in Florida?

Question

I'm looking to move my business to Florida and focus specifically on buying apartments. Based off the research I've done it seems that Orlando, Tampa, Collier County, Ft. Lauderdale markets are good.

I'm trying to decide on which one to pick first. I will expand to all of them at some point though. Does anyone have the ground truth?

- Thanks

Mark J. · Answer

I monitor the MLS everyday and look at every MF in Hillsborough County. When you say "apartments" do you mean complexes or duplexes and such? The majority of the duplex/triplex/quadplex properties are in East Tampa (33610) and NW Tampa (33504/33612), and scattered far and wide along the 1-4 and I-275 corridor, which are generally considered to be a low-income areas. Rents are low, but properties are cheap and commonly run-down through poor upkeep. The most common MF is a duplex, 2/1 with about 600-700 sqft on each side. Most are garden level, although a few are two story, particularly in the Sulpher Springs area, which I think is a better investment than East Tampa, particularly if you can get property near the Hillsborough River. However, Tampa is a bit strange and you can find MF properties plunked down in the middle of a SF neighborhood, so there are lots of options.

I'm definitely seeing an uptick in MF listings within the last three months as investors who bought at bargain basement prices ($20-30K) in 2011-2013 are now cashing-out around $100K. Section 8 housing generally supports a $750-$850 rent for a 2/1 and higher in other areas.

Not sure if this is the market or info you're after, but feel free to PM me if I can help in any way.

I'm definitely seeing an uptick in MF listings within the last three months as investors who bought at bargain basement prices ($20-30K) in 2011-2013 are now cashing-out around $100K. Section 8 housing generally supports a $750-$850 rent for a 2/1 and higher in other areas.

Not sure if this is the market or info you're after, but feel free to PM me if I can help in any way.

Mark J. · Answer

@Tom Scott - HA! Thanks... Perhaps I should become a realtor and improve the world of real estate. If I ever did, I tell you what my #1 priority would be-- INSANELY GREAT communication. How a realtor let's a call go to VM or doesn't return texts or emails for hours or days just baffles me. I'm seeing three MF properties tomorrow and was AMAZED that one of the realtors answered the phone immediately, gave solid substantive info, told me he'd call me back later in the afternoon with a time he could get me in to see the property...and sure enough, he did exactly what he said he would. I almost cried. (not really). BUT-- the point is I'm just so accustomed to realtors being lazy, unavailable, unknowledgeable, unresponsive, and generally unorganized that when I encounter a professional agent with great communication and follow through, it's like meeting E.T. the Extraterrestrial.

Adrian Smude · Answer

I don't personally follow the MF market much and I stay East of I75, but I'll add that @Mark J. shouldn't be calling himself a newbie! I know mark outside of BP as well and he's very knowledgeable and has experienced fix and flip along with rental.  Mark, you may be "new" in the time you've been investing but experience and credibility trumps that!

In any case, Account Closed

Mark J. · Answer

OK @Adrian Smude - here's your upvote. Check is in the mail! ;)

Account Closed · Answer

Great. I am in the Orlando area so I am more familiar with this market.

Account Closed · Answer

Thanks for the input everyone. I'm specifically looking for apartment complexes 40+ units.

Madeline P. · Answer

@MarkJ, thanks so much for your offer.  As new investors, we appreciate any and all help.

I've already PMED you.

Madeline

Kevin Darrell · Answer

@Mark J.  Thanks, will do.  I had a friend retire and move to Tampa and will visit next month so i'll be checking out a couple of people and possibly drop in on the expo/meet up  on Nov. 6th that i found out about here on B.P.

Mark J. · Answer

@Kevin Darrell - if you're looking in the Tampa (Hillsborough County) area, PM with any questions. Always happy to talk shop. ;)

I'm just a newbie, but I'll pass on whatever knowledge and experience I've accumulated (for better or worse) over the last two years! I can only offer just one guy's perspective, and so I would take my, and everyone else's opinion, with a healthy dose of skepticism. Your mileage may vary.

How is the Multifamily Market in Florida?

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