New investor in Tampa looking for advice

Tampa, Florida
General Real Estate Investing
2yFollow

New investor in Tampa looking for advice

Ivan Castanon
Member since 2024 · 23 posts · 19 votes

Hello all, I am an aspiring real estate investor. I am hoping to start investing in the Tampa Bay area in Q1 2025. I am interested in LTRs. However, I have my doubts about it and I am hoping I can get some advice or opinions from other investors or experts in the area. I have analyzed a few deals in the current market, but I have not been able to find a single one that will produce a decent cashflow. 

I am wondering what are the projections for next year? I have read that the housing inventory has been increasing. I am hoping that this, combined with the expected rate cuts, will make it easier to find good LTRs next year. But, on the flip side, I have also read that rents are starting to correct and go down.

So, I wonder, am I making a mistake by hoping that the market will be better for investors next year? Or should I just give up and look for something else to invest in?

0Reply
36 views

6 Replies

Jump to latestLatest
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 690 votes
    2y

    Welcome to the world of real estate investing! As someone who has been investing in the Tampa Bay area for over 20 years, I can tell you that it's a market with great potential for long-term rentals (LTRs). While current deals may not seem to offer great cash flow, the increasing housing inventory and potential rate cuts next year could improve your prospects. It's wise to stay informed, be patient, and consider diversifying your strategy. Working with a knowledgeable local agent and keeping your finances ready will help you seize good opportunities. Don't rush into deals, and remember, the Tampa market has a lot to offer if you're prepared and flexible. Best of luck!

    Jorge Vazquez

    Graystone Investment Group517 Reviews
    WebsiteView Page
    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
    2y
    Quote from @Ivan Castanon:

    Hello all, I am an aspiring real estate investor. I am hoping to start investing in the Tampa Bay area in Q1 2025. I am interested in LTRs. However, I have my doubts about it and I am hoping I can get some advice or opinions from other investors or experts in the area. I have analyzed a few deals in the current market, but I have not been able to find a single one that will produce a decent cashflow. 

    I am wondering what are the projections for next year? I have read that the housing inventory has been increasing. I am hoping that this, combined with the expected rate cuts, will make it easier to find good LTRs next year. But, on the flip side, I have also read that rents are starting to correct and go down.

    So, I wonder, am I making a mistake by hoping that the market will be better for investors next year? Or should I just give up and look for something else to invest in?


     Hi Ivan,

    Local Tampa RE investor here. Tons of great resources to help you plan out your strategy. Let's connect!

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
    WebsiteView Page
    0Reply
  • Mya Toohey
    Real Estate Agent · Tampa Florida · Member since 2013 · 630 posts · 303 votes
    2y

    The Tampa area has an influx of people moving here. LTRs are and will stay a major part of Real Estate here. MTRs are also a great way to make more than a LTR. It all depends on your strategy, house hacking, rehab, BRRRR and/or turn key properties. If you can do a value add and BRRRR it, that really makes the most money.

    0Reply
  • Mikhail Pritsker
    Member since 2024 · 10 posts · 8 votes
    2y

    Hi everyone,

    I live on the East Coast of Florida, and I have to say that all long-term rental trends (LRTs) are dependent on future revenue and expense projections. The model is super sensitive to both. On the expense side, we still have expensive money, expensive insurance, and growing HOA fees (if any). There are also nonzero probabilities of having special assessments for a medium-term horizon. Also, don't forget some brokerage fees when you find another renter, so account for at least some vacancy and fees once every 18 months.

    On the revenue side, I still see that renting is way more affordable than buying anything, so the rental market will be okay for some time, especially for up to 3K a month. We all hope that when/if the rents decrease, there will be more inventory, but there will also be more people who can afford to buy. All that will bring both downward and upward pressures on the prices.

    The net effect on the prices remains unknown since Florida remains a desirable location.

    0Reply
  • Nick C.
    Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    2y

    Analyzing a few deals is not going to get it done. You may have to analyze a few hundred deals to find a good one. 

    The best part of LTRs is you don't need to project, guessing what the market is going to do is not as relevant as finding a good deal now. I've seen tons of potential investors lose money by trying to guess what the market is going to do. 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Ivan Castanon

    Inventory, interest rate decreases, rent adjustment, market reports, and economic indicators are all important considerations when making a successful real estate investment. Diversify your study by including communities with employment growth, schools, and low crime rates. Consider other funding alternatives, be conservative with rent predictions, and be adaptable. Consider contacting a local real estate mentor or joining a real estate investing organization for assistance.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free