I am planning on moving to tampa in a few months to spend a year or two BRRRR-ing properties with my partner. We want these to be more of appreciation plays so cash flow is not the determining factor but we would prefer not to have negative cash flow while we sit on them. We are looking at the 100k to 200k price point and want to hold them indefinitely. Any recommedations on specific areas/zip codes in the tamp/st pete/clearwater area to invest would be greatly appreciated. Thanks.
If you want to focus on appreciation instead of cash flow, you are putting yourself at higher risk of no returns and monstrously reducing returns.
This kind of speculation is not a good strategy for real estate investors. Ask them about what happened in 2008.
While I will be happy to sell you as many houses as possible, as an investor I don't understand your strategy. Can you explain your strategy in greater detail?
Hey Scott. I do agree with Matt and there's not much room for appreciation but some areas will appreciate better than others. I'm in St Petersburg and areas around DT St Petersburg will appreciate better like Old Northeast, Elucid / St Paul, Historic Kenwood, Crescent Lake, to name a fews. Pretty much Central Ave north and east of 275 but areas are up and coming west of 275 and south of Central have some time... I'm a broker in the area and do property management as well. Let me know if I could help evaluate some property.
I also used to live in CO! Denver then Arvada. Moved here about a year ago and this area has so good similarities to Denver and that market, but cost to enter is about half the price!
Property values are rising too fast now and they can't keep going up. Its like 2008 in Tampa Bay all over again. I won't be surprised if we see a correction or stall in the next 18-24 months down here.
@Jeff Morelock Housing prices in the entire country have been appreciating at 5-10% a year . Many markets higher than that . Actually most financial instruments have been setting highs for years - It al boils down to Supply and Demand . Many cities including most of Florida has a housing shortage. More people are migrating than current supply levels. Can it slow sure. However Considering FL demographics uptick , foreign investment dollars and the economy it is more likely to continue rising. Until there is a downturn in the economy or Florida slowing migrations I feel if you don't chase deals or get into bidding wars , there is still equity to be had in the upcoming years in the greater Tampa area. The Billions of dollars committed to flowing into the city is not just going to stop unless the entire USA economy goes to he....
If you're playing hard on appreciation I wouldn't do so in that price range. If you're in multi in the 400k+ range in A/B areas then that might be more of an option but of course appreciation is all driven by cycles and assuming its value doesn't go down (at some point it is likely), your main strategy should be a fair return but appreciation can be a consideration. @Keith C. makes some good points and I'm quite bullish on the areas around here in Tampa. In my final opinion, appreciation is icing on the cake but not the main meat and potatoes.