CA-based Investor looking to build FL portfolio (Jax / Tampa)

16 Replies

Hi all! Been lurking for a while as I catch up on the podcasts, etc.

About to close (next week or two) on my first 'turnkey' SFR through HomeUnion (great experience so far, ask me if you need details, I've read all the BP posts about them to date), and already setting my sights a little higher. While I don't buy the '50 roofs vs. 1 roof' argument completely, the idea of refinancing or consolidating 50 properties at once down the road has me reluctant to start down the (admittedly simpler) route of buying every SFR with good numbers.

I'm a numbers geek and my interest is in 'commercial' (4+ units) in Tampa Bay (particularly between St. Pete and Odessa) or in Jacksonville. I'm hoping to put in some cash offers that can be refinanced in a year or two. Hoping to meet brokers or agent in the TB/Jax areas that play this game and can filter MLS for 2%'ers, etc. (I got 1% and change with HomeUnion if it plays out along the pro forma). I think the sweet spot for me is 'medium-fixers' that still have some meat on the bone for value-added rehab. With that in mind, I'm also hoping to make some good connections with rehab people in the TB/Jax areas as well. Love this place!

I would be managing from a distance or through a management company, so anyone else (specifically in the Santa Barbara area) who has had good luck with distance relationships in Florida would be a welcome connection. 

I almost made an offer on a commercial property (1300 sqft office building/house) in Santa Barbara last week, but just couldn't pull the trigger with a conservative 4% cap rate. Not sure how anyone still invests for income in this state...

Here's to no fed rate increase in September!

Hello Mr. Bogan and welcome to BP! It sounds like you're doing some really big things. I can help... I wholesale a few houses each month in Jax and would be happy to add you to our list if you're interested in great deals. Let's me know, good luck!

Welcome to the Sunshine State, if only virtually. I'm a PM and investor/wholesaler in Tampa Bay. Just putting together a new team, so I'd love to add you to my buyers list as we ramp up. I can set you up with MLS alerts at that time too. I will stay in touch!

@Elihu Bogan welcome to BP.  I don't do anything in commercial real estate yet, but @Eric Odum has a great podcast based out of Tampa that you should listen to as well as the BP one.  It's called Invest Florida (they have an app as well). Good luck to you! 

@Rondi Frisch would love to be added to your mailings - please let me know what you need from me!

@Adrian Smude Thanks so much for the lead on @Eric Odum 's podcasts! I've been through a bunch already, it's been really helpful.

@Mark Nolan thanks for the link! I knew there was a starting page somewhere, just didn't know where exactly.

@Account Closed 's podcasts were that Miami and Orlando are the big growth markets, Tampa is #3 with disappointing macro stats in the last year, and Jacksonville is still an afterthought but has shown good numbers recently. I've got family in Jax and Tampa so those are my markets for out-of-state investing, and since 'cashflow is king' here, I'm thinking Jax's underdog reputation should help me avoid the recent price hikes. Tampa seems really spread out as well, and harder to get a read on neighborhoods.

My 2 cents, there are still areas in Tampa that make sense, depending on where you want to be and in what asset class.  But, the pickings have become really slim.  Investors are having to look for value a lot harder than 2 years ago.  

We like Jax. The CAP's run slightly higher than Tampa. Average rents are a little lower. Jax is a forgotten market. There is not much flashy about it. But, it seems to continue to kick out working class jobs at a rate above Tampa, but not as robust as So Fl. On the investment side, Tampa tends to lag So Fl in the investment cycle and Jax lags Tampa. We are seeing increasing numbers of investors from So Fl creep in to our market, trying to escape the frothy market down there....I am sure Jax is experiencing the same. In fact, We are trying to fine MF deals in Duval now similar to what we were buying in Tampa last year.

@Elihu Bogan I'm curious, Why Tampa?  If you're looking to buy and hold and you're going to do it from across the country, why wouldn't you look at locations in the mid-west that are "easier" to come by that get better returns?  

Are you truly looking for cashflow? or are you betting on appreciation? 

@Eric Odum Thanks for the color on Jax, it's appreciated. Best of luck in Duval!

@Robert Curls I have family in both Jax and Tampa, so I'd be in both cities on a 'regular' basis (once or twice a year) and have an emergency support network if needed. Easier to get to know contractors, brokers. etc. I've heard great things about the mid-west, but I have almost no other excuse to visit, so I'd be much more absentee. You're not the first person to ask me this, though, so maybe I should consider broadening the net anyway.

Like most of the people I've read on BP, I'm looking for cashflow to justify the deal, with appreciation as icing. In general, I've been using a 1% rule to filter, as I haven't seen a 2%er I'd be comfortable owning.

Jax has been lagging behind the rest of the state in this real estate price recovery, meaning there is still decent value here.  The comments about the blue collar jobs are spot on.  Jax proper has been cranking them out.  

In addition, Kings Bay naval base, right across the state line in GA, is undergoing a major expansion as well.  Google it if you've never heard of it.  Interesting stuff.

Hi Elihu-- If you're interested in multi-family investing (not just commercial), I just finished a complete rehab on a 6/4 duplex in a great neighborhood in Tampa. PM me if you're interested in hearing more.

Thanks and welcome!

Mark...

Congrats, @Elihu Bogan for success in pursuit of your early goals. My niche is in developing non-recourse capital platforms that propel entities and investors to larger scale markets without future debt service. If I can ever assist you in your business, I welcome the opportunity.

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