Just a heads up- I’ve placed a listing in the Marketplace forum for a small investment opportunity in Tampa. Thought I’d share for our Tampa investors.
hi Chris! What kind of returns are there to be expected in Tampa area?
Any areas to focus on or avoid?
Tampa is no different than any other growing metro. There’s a wide spectrum of properties and returns to consider. My recommendation is to pick an area and learn it.
South Tampa and Westshore are hot areas right now, and the one I know the most about. But there’s a price premium. Redevelopment is the best option in this area to maximize returns.
Thanks Chris! That's what I'm trying to do is learn the area since I'm moving there soon and looking to start investing there as well.. what kind of average return is there in the areas you mentioned?
In upstate NY I'm getting 15-20% but to buy now looking at 8-12% on average.
What type of investing do you do?
Multi family and apartments. You?
I see some 5/6% return in Tampa. That’s depressing
Not very exciting for returns, are they?
That’s the nature of a market like this though. You can buy good property and pay the premium, or buy marginal properties that will force you to work for the higher rate of return, if that higher rate even materializes.
I watch a lot of people go into those marginal properties thinking they’re going to get a 12-14% return, only to incur a repair or a vacancy that wipes it all out.
Which is why I recommend redevelopment to maximize returns. Knock down a house a build a four unit. Knock down a four unit and build an eight unit. Takes longer, and a lot more capital, but the returns can be substantially better than 5-6%.
@Chris Pflum, interesting POV...that’s seems like taking the “forced appreciation” to the next level.
Do you take outside investment?
We are willing to add additional investors when it makes sense. We’re targeting to start a new project at the end of the year that might be a good opportunity for someone to step in.
For anyone who’s interested in learning more, I invite you to sit down over coffee with me and let’s get to know each other’s investment objectives.