I am new to the real estate market and figured its time to grow up and start investing. I was in Tallahassee FL a couple of times this year and felt like there is potential to invest in some real estate there. I have done research and concluded that the city is improving in a number of different categories (crime, housing, job market & health).
I am thinking of purchasing vacant lots around Tallahassee and building a number of units ranging from town-homes, triplex, and office space. I have the cash flow available to get started
Do you think Tallahassee is the right market this time around. I was hoping to get some insight and/or tips
If you have any recommendation that would be greatly appreciated.
Highest violent crime rate in the entire state, 5 years running. Tallahassee averages 1.4 rapes a day.
32304 is the poorest zip code in Florida.
Good luck finding contractors after a hurricane.
Having lived there, Tallahassee does have its setbacks like @Farhood B. said. It is up and coming, knowing your areas will help you immensely to avoid the troubled parts. Id stick to the eastern side of the city and avoid college town and pretty much anything west of it. That said I do think it would be a great area to invest, how that is, is up to you.
I would just advise you that development is not something a newbie should attempt without a mentor, especially in this town with all of the permits and regulations. Before you know it there will all types of unexpected costs hitting you and your initial projections will be shot and construction delayed. Your main problem will be finding a lot that is even close to reasonably priced. I'd stick to looking for distressed property, which isn't easy to come by these days. Most of the people making money are the developers buying raw land and creating lots, but you will need deep pockets for this and be able to carry costs for more than a year waiting for any money to come in.
I crack up every time I hear comments about crime rates etc. The problem with those stats is the crime is isolated to small areas and it based on number of crimes and population. Tally doesn't have a large population but a high number of crimes so statically it has the highest per capita rate. (made up numbers) So Tally could have a 100 murders in a year and be the highest crime rate, yet Miami could have 3,000 murders in the same year and still be rated as less murders per person. The majority of the city has little to no crime but the bad areas have really high rates. It's the same way in any City.
Thanks for the information