Tampa St Pete entry market flipping

10 Replies

I am genuinely at the beginning of researching many markets and ideas for what comes after my current caregiving stint. I surprised myself by having a little time away offered and decided to look at Tampa/St Pete, when Florida hadn't really been on my radar. I'm wondering if anyone could offer me both neighborhoods, most likely T/SP proper or very near in, and estimates of expected prices of safe entry level neighborhoods for flipping that I might be able to check out on my trip. I'm doing some demographic research right now, so I'll be able to self guide fairly well, but I know actual on the ground local knowledge can't be beat. My trip and research at this point are strictly educational, so any information would be hugely appreciated, but most likely isn't going to turn into any kind of real relationship or business any time soon. Full disclosure, if I do choose this route, then I will most likely get licensed and pursue a standard, if you will, real estate "retirement" career, along with a degree of hands on flipping, since I have the skill set for real estate, some of the skills and a real enjoyment of degrees of construction work (along with enough sense not to get into what is over my head), and genuinely enjoy almost all facets of real estate from birddogging to negotiation to design/redesign to marketing to selling. I'm looking to find where the lowest priced/risk opportunities may live, so I limit my ability to harm myself with my learning curve. Thanks in advance.

Welcome to the forums!

Entry level investing depends on the person but most areas that have lower price inventory that still sell are areas like Ybor City, Palmetto Beach, possibly East Tampa (think by the casino). Heavily gentrifying areas that attract a lot of flippers and end buyers are seminole heights, tampa heights, and west tampa currently. 

Good luck on your journey! 

@Edgar Rodriguez thanks for the insight and tips. I was recently on a trip to Tampa and noticed the growth and opportunities to invest in the area. In your opinion, what is the multi-family home market like and the average rent? Looking forward to your response.

-Christian

@Christian Ortega hey! You are very welcome. 
The MF market is limited to the inventory. Not a lot available in good areas. Rents range on average from $1-1.50 a foot. Depends on location, bedrooms, condition of property. 
for example, some properties in south tampa rent for upwards of $2 a foot. 

Let me know if you want to connect and maybe set up a call. 

@Christian Ortega I believe almost ever form of investing is possible in this area: short term rentals, multifamily, single family, BRRR, flips, wholesaling.

It just requires consistency and persistence because this market does have limitations.

In terms of it (flipping and wholesaling) being the most consistent forms, probably because of there being more SFRs and a constant demand for move in ready housing in most areas.

There are a lot opportunities in South St Petersburg and Gulfport areas good for flips and buy and hold multi-familiy BRRRs. Both Tampa and St Petersburg are saturated with investors and competitive. I just like the market a lot better on that side of the bay, more opportunities in my opinion. Beware of flood zones! Always check for flood zones as part of your due diligence.

One thing you have to be aware of with flipping here is you're competing with new construction in a lot of areas with developers who are getting tax incentives you won't have access to.  Also, Florida has a history of bad contractors whose mistakes are not covered on the insurance claim when the hurricane comes through.  I've been slow flipping 1 at a time for a couple years here on very specific properties with individual situations that create value, being very picky on specific construction styles of homes and relative ground elevation.

You guys ROCK! I've got a couple few days to do some more deep dive research and your local info will be a huge great guide and the Gulfport recommendation helps particularly, since I spent a little time there recently with a friend and thought it could be good, so you're helping confirm my nose works in places I'm less familiar with. Let's just hope I survive my red eye and the first day's runaround Tampa. I've got a lot to learn, but if this does wind up where I go, I think it'll probably be mostly focused on St Pete and I'll probably start out just like Tim with a slow careful one at a time. You all really are giving me a huge hand for my initial serious look around. Thanks!

Originally posted by @Franklin Delano Roosevelt :

By the by, I see "votes" on a response or two, but don't see a way to do that myself, when I'd like to do that as a thanks of some kind, I think. Anybody able to educate me to this etiquette on the site?

 I think under the persons name, you click the green upwards arrow.

Also, if you're looking for consistent tenant demand for rentals, Ybor, south tampa, and the area near USF will be good as the populations there are young. If you do Ybor rentals, get an ironclad lease agreement as they can easily get trashed. Same with student houses (you can also have their parents co-sign for damages as a backup) Just make sure the USF area is understood, as its hit or miss on crime (stay closer to the university if possible)

For flips, east tampa is growing, and lowry park zoo area is projected to get a lot of funds for improvement. MacDill AFB will always have people coming in as its a major USAF installation, so people are always moving to/from that area. That being said, they can be very pricey. Many of the military and contractor folks live in the FishHawk community to the east near lithia and prefer to commute for the house prices. If you find something good near the base though, grab it! 

Best of luck!