What are your thoughts on Sulfur Springs

14 Replies | Tampa, Florida

Hello Tampa Investors. 

I have been looking for rental properties all around Tampa. One area that I like, price-wise, is Sulphur Springs. I feel that SS is a semi-sketchy area, especially the southern part of the springs. What are your thoughts on the area and what are your thoughts on how the area will progress in the next 5 to 10 years? All opinions appreciated. Have a great day. 

Its located in an opportunity zone so there is a nice tax incentive there if you're looking at buying and holding. I have helped investors acquire in that location and although rough you will see a good return. The area is slowly changing to adapt to the gentrification in the Tampa area so I can see in five + years this area being completely different. The thing about this area is you can place a HUD tenant which will bring in a guaranteed payment above marker rent which is great for the cash flow aspect.

Originally posted by @Luke Skinner :

Its located in an opportunity zone so there is a nice tax incentive there if you're looking at buying and holding. I have helped investors acquire in that location and although rough you will see a good return. The area is slowly changing to adapt to the gentrification in the Tampa area so I can see in five + years this area being completely different. The thing about this area is you can place a HUD tenant which will bring in a guaranteed payment above marker rent which is great for the cash flow aspect.

Luke, thanks for your very wise perspective! These are the areas that I have found in my lifetime have yielded great returns over time.  I grew up in Washington DC and saw that turn around.  I owned property in Harlem, NY in the 90's-LOOK AT WHAT HAPPENED! Same with Asbury Park, NJ.  Look at the potential and check the planning commission for approved development plans; look for chains opening nearby. Don't be afraid to sit on the property and reap the rewards!  Thanks for this tip because I will now focus on that area.  What is the zip code for that area?

Brandon Thompson and all the others who think that Investing for the Long Term in a War Zone is a good idea??? Are you all crazy? I am selling my last Rental house in North Seminole Heights about ten blocks South of the Sulphur Springs swimming pool on Nebraska and Sligh Ave. behind the Post Office. I just lived in that 3/1 Rental, block house, for three years to make it a Tax-free Sale of my Residence, while I fixed it up. New roof, $5000 for refinishing the Terrazzo floor, Central Heat and Air, built in 1955 style. All new paint, inside and out, front porch, side porch with covered carport and outside laundry room. Two 10x10 sheds in the back for more storage, 50x100 foot lot, all fenced in with gates and parking in front. The 5/3 house, two lots South of me is being completely rehabbed and they are building a new house on the second vacant lot. An Agent just finished a new 3/2, 1600 sq. ft. house on the North corner that she is asking $385,000 for. She paid $70,000 for the lot and just sold one just like it on the West side of I275. They just finished a beautiful rehab, new construction of the junky mechanic's shop on the South side of the Post Office around the block and turned it into a brand new restaurant. Four blocks South on Nebraska Ave. they are finishing a whole block of four story apartments. Along Nebraska Ave. South towards Ybor City, they are now building blocks of three story Townhome/Condo type dwellings. Everything South of Sulphur Springs is being developed. I'm asking $205,000 after renting my house for 11 years during the time that the neighborhood, South of Sulphur Springs was being "gentified" on the East side of the I275 Highway. The West side of I275 was the desired area ten years ago. Everybody wanted something in Seminole Heights. Then, the amount of Rehabs that have been done over the last five years to make the East side look respectable and double the values is incredible. It's now hard to find a house to fix up to Flip and the Builders are buying lots for 3/2 Spec houses to sell. Just because it is dirt cheap to buy a property in Sulphur Springs area, does not mean that you will see any Appreciation in that area for decades, unless the Builders come in and just start tearing down the wood frame, termite ridden 2/1 and 3/1 houses and start building new. And if you are thinking of renting in one of the poorest areas in Tampa...god help you.

Brandon, I have been seeing plenty of opportunities in Sulphur Springs and would love to connect to see how we could help one another! Definitely an opportunity zone, and certain areas are seeing solid returns. Have personally seen multiple investors purchase properties from my company and have all sold above our estimated ARV.

I am in the same boat and all I can say is that while SS is super sketchy. Both there, Ybor, and north Tampa have a huge uptrend in investor purchases and flips. Those areas will be completely different in 5-10 years especially the closer you get to USF. I am in the process of building a pipeline there as we speak feel free to get in contact and let's grab coffee and see how we can help each other. 

Wishing you the best on this brotha and I am sure our paths will cross out there. 

Good luck brotha!

I realize this is an older post but I have to agree that Sulpher Springs is a warzone. If progress ever jumps north over Sligh Ave, you can consider making the investment with the aim of being in the path of growth. All the ROI opinions stated above are relatively correct but only if you can find a property manager willing to collect weekly payments in that area unless you are ready to run your RE business with Section 8. Those properties also have not appreciated the same way as the surrounding neighborhood. Not trying to dissuade you. Just want to make sure you are getting a real world picture before pulling the trigger.

I have clients who are unfamiliar with the Tampa area about Sulfur Springs all the time. It is an opportunity zone but if you're planning on a long term hold this could be a great opportunity as development continues to move North. There are opportunities for cash flow rentals if you have a decent rehab team and are aware of the potential tenants.

SS has been phenomenal for me. If you're out of state I recommend reaching out to people who know the area not just know of the area. I say that because one street could be gorgeous and the next could be run down. Often the run down parts are from slum lords who couldn't care less about keeping the property up. I have three houses in the area and couldn't ask for better tenants. 

Originally posted by @Ryan Hamaker :

I realize this is an older post but I have to agree that Sulpher Springs is a warzone. If progress ever jumps north over Sligh Ave, you can consider making the investment with the aim of being in the path of growth. All the ROI opinions stated above are relatively correct but only if you can find a property manager willing to collect weekly payments in that area unless you are ready to run your RE business with Section 8. Those properties also have not appreciated the same way as the surrounding neighborhood. Not trying to dissuade you. Just want to make sure you are getting a real world picture before pulling the trigger.

I would agree with Ryan. It will take quite sometime for those neighborhoods to come up; I thought it would happen faster with development pushing north and east from the Tampa core, but that is not the case. If you're looking for good tenants or a STR, I would steer clear.