Thinking of moving to and investing in Tampa/Clearwater/St. Peter

30 Replies | Tampa, Florida

Originally posted by @Michael Shao :

@Jack B. Hi Jack I am new in real estate investing. Could you talk a little bit more about why florida is more favorable to rental property investing than Seattle ?  Thanks 

 Rent to price ratio. Rents are high, properties are cheap. A house with 1k rent in Lakeland area can be had for 75k, low taxes. 

In my area a house with 2k rent is 450k...unless you buy with a lot of money down or at the bottom or short sales you don't make your money on rent, just equity gains. The rent typically barely covers the mortgage.

Seattle has one of the worst rent to price ratios of any big city. Cheaper to rent most of the houses in this area.

Originally posted by @Jack B.:
Originally posted by @Michael Shao:

@Jack B. Hi Jack I am new in real estate investing. Could you talk a little bit more about why florida is more favorable to rental property investing than Seattle ?  Thanks 

 Rent to price ratio. Rents are high, properties are cheap. A house with 1k rent in Lakeland area can be had for 75k, low taxes. 

In my area a house with 2k rent is 450k...unless you buy with a lot of money down or at the bottom or short sales you don't make your money on rent, just equity gains. The rent typically barely covers the mortgage.

Seattle has one of the worst rent to price ratios of any big city. Cheaper to rent most of the houses in this area.

@Jack B. I agree with Lakeland being a great rental market. But make sure you know the area before buying. I've been seeing more and more out of state investors selling for a loss or buying with no possibility of making $$ because the deal looked good on paper.

Originally posted by @Adrian Smude :

Jack B. I agree with Lakeland being a great rental market. But make sure you know the area before buying. I've been seeing more and more out of state investors selling for a loss or buying with no possibility of making $$ because the deal looked good on paper.

 Word has it South Lakeland is the good part, but no true ghettos in general in the other areas. Crime seems ok there. My understanding is insurance is cheaper since not coastal and that house prices are low because, again, not coastal. Commutable to jobs in Tampa and Orlando, so it has economic power.

Originally posted by @Patrick L. :
Originally posted by @Don Johnston:

@Jack B.   I lived in the Tampa Bay area (Valrico) for 12+ years.  I tell anyone thinking of moving there to visit in the summer, then decide.  I think it is a great area and if I move there again, I would choose closer to the Gulf...better chance for a breeze and less time it takes to go fishing.

Also, my opinion, choose someone who lives, works and invests in the area to help you out.  I have "driven" around on google maps street view enough to know that you get a real mix of properties within close proximity.  (I have also physically driven the area when I lived there.)

I hope to invest in Florida and then move there (in that order since I have obligations here in San Diego).  I will be getting in touch with someone local.

 No reason to live inland in Florida, all of the negatives without any of the benefits.  The summer is just fine out fishing or at the sandbar on the boat.  

If I lived in California I know I wouldn't be able to afford a backyard like the one I have in St Pete

....

In your opinion it's OK to invest inland, but not live there? I am taking a closer look at Lakeland now, in part because of this thread. Who chooses to live in Lakeland? Is it safer from hurricanes or have a lower overall value because it is inland? 

@Paul Winka there are many reasons I like Lakeland for a rental market.  A few are the many different type of jobs, a lot are factories, a lot of growth right now, I4 corridor, it's still possible to find deals, and for me it's close.  

Jack,

I live in Sarasota county, but invest in Pinellas, Hillsborough, & Polk/central FL counties.

The cash flow is great, and the prices are fantastic - I'm doing a portfolio right now that is seventeen units, for $500,000. Cash flow as it sits is $7,500/ mo., and the market rents are $13,000. Central Florida is the only place I know to get those kinds of returns without being in the ghetto.