Tampa Bay Investors – What’s Your Biggest Challenge in This Market Right Now?

Question

Hey BiggerPockets community,

I’m Adam, a new realtor here in Tampa Bay and someone who plans to invest myself down the line. Lately, I’ve been reading about how prices are dropping in a lot of areas across Florida, especially condos, and how rising insurance costs, taxes, and interest rates are really changing the game for both buyers and investors.

For those of you actively investing here – what’s been your biggest challenge in this market right now?

Is it finding deals that still cash flow with these higher insurance premiums? Interest rates making numbers tighter? Or something else entirely?

Also, what are you doing to adapt to these changes?

I’d love to hear your thoughts and see what you’re seeing out there. Let me know if there’s any way I can be helpful too!

Jorge Vazquez · Answer

Hey Adam, great question—been doing this 20+ years and yeah, the last few made that 1% rule feel like chasing unicorns. But lately? I’m stacking deals again, especially subject-to. Just closed two back-to-back at 4% and 5% interest, zero money down, infinite returns, and cash flowing from day one. Sellers are nervous, rents are up, and rates should dip soon—it’s the perfect storm if you know how to structure it right. Condos are tricky with crazy HOAs, but well-priced single-families still work if you get creative. Florida hasn’t lost its bottom. Oh, and here’s the kicker—insurance is actually going down on my 40 properties. Let’s just pray we avoid any monster hurricanes this season, and watch the sidelined investors come flooding back in.

Terry Ouimet · Answer

It’s been a busy rental summer at our single family in FL, yes insurance costs and hurricanes are real challenges, but I think they are largely overblown in the media and this forum  with everybody talking about it, creating widespread fears contributing to panic selling. I too was able to find lower insurance rates.  I’m sticking with my buy and hold plan, until  Something forces me to sell, I’m trying not to  follow  the crowd. I just paid the house off a month ago and it will cash low about $1500-$1800/mo month as a STR , or we can choose to be more selective with our guests  and not rent it out as much. We enjoy visiting there, I might stay there for a month or so in winters. People will always love the beach, that’s what I’m counting on.

Nick C. · Answer

Prices are dropping because most of the inventory is overpriced, dated junk. A lot of it was purchased during the covid buying frenzy. Sellers need to come back to reality.

Well priced, well updated houses are still selling just fine. But national headlines don't let the details get in the way of some good clickbait.

Condos are different mess, some HOAs are increasing by hundreds and sometimes thousands of dollars per month due to the new laws since the collapse. Condo owners are trying to get out in front of it and flooding the market. I don't think there's an easy solution for that one...

Adam Lowe · Answer

@Adrian Clapp Thanks for sharing that article – it’s pretty eye-opening to see how hard Cape Coral has been hit. I’m curious what you think is impacting it most?

Kathy Utiss · Answer

What is happening in Florida happens everywhere. As we are all shown how to create debt. But are not shown how to both offset our debt creations and insure we create additional income for our future.  Then when things happen beyond our control are literally screwed. Many people do one thing in this life that is talk of performance. Meanwhile most will do everything but get advice that actually HELPS them! As many give good lip service with no intent to ever perform.

So how do you remedy the ongoing income inequality crisis? Show people how to use their life, health, and home(assets) to utilize their assets to fund their now and future as much as possible. If we focus on creating good karma our efforts will produce less negatives which I think is what is wanted. It should be WANTED BY EVERYONE!

It's within our laws to build financially secure individuals. That will make it easier on individuals that do try to be good upstanding indivdiuals.  An indivdual thru my company can now fund an IUL thru one of America's top life insurance companies. For a 15% equity stake. This isn't a heloc. The minimum appraised amount is $400,000. 15% is $60,000. That $60,000 over their lifetime depending on how long they live could make them $2 million over their lifetime as the IUL pays out every 8 to 13 years to the asset creator. The creation comes with other benefits. Most just are not aware of how to utilize this one life as an asset creator and leave money on the TABLE!

Adrian Clapp · Answer

Nearby Cape Coral is really suffering.

https://www.wsj.com/real-estate/florida-cape-coal-home-price...

Amber Stout · Answer

Hey Adam — welcome! 👋 You’re spot on — I’m seeing insurance, taxes, and rates impacting numbers across the board and killing deals/making them tighter.

I’m a mortgage broker and investor myself, and I’ve been helping clients get creative with financing structures and seller negotiations to keep deals alive. Sometimes it’s all about structuring the loan and offer the right way to preserve cash flow. That's how my team has been getting deals done still.

Would love to connect if you ever want to chat or collaborate. Appreciate you starting the convo!

Adam Lowe · Answer

@Terry Ouimet Thanks for sharing your perspective, that’s really encouraging to hear!

Congrats on paying off your house, that’s incredible. $1500–$1800/month in cash flow with the flexibility to use it personally sounds like the best of both worlds. Out of curiosity, how did you go about finding better insurance rates?

Kathy Utiss · Answer

It's a loan against the home. It's paid off from the policy created when it pays out.

Account Closed · Answer

@Nick C. I've noticed this also. I recently completed a flip in Gibsonton and am working on another in north Tampa and we had tremendous traffic throughout the listing and accepted an offer 15k over asking.

Tampa Bay Investors – What’s Your Biggest Challenge in This Market Right Now?

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