Gentrifying neighborhoods in Tampa

12 Replies

Hello,

I am looking to further expand my rental portfolio in the Tampa area. Although I am located in the Philadelphia area, I have owned and rented out a townhouse in Westchase since 2012, so I have a basic understanding of the city.

This time around, I would like to invest in a part of Tampa that is not currently an A neighborhood like Westchase, but is undergoing the early stages of gentrification and still contains properties that cash flow. Does anyone have suggestions on neighborhoods that fit that description?

Thanks in advance for your advice.

Rick

I am not an expert on Tampa. I am just going off what I have heard.

Southeast Seminole Heights

Tampa Heights

I have also seen some flips in Carver City, which is not great but borders Westshore/International Plaza area.

Google Tampa Heights, the city is spending a lot of money redeveloping this area.  Seminole heights is also an artsy neighborhood that is "cool".  These are very different demographics compared to West Chase.  You can probably get 20% Cash on Cash return.  Beware of old wood houses they may need a lot of work.

Additionally the Riverview/Apollo Beach area is about to have a new hospital open, these are more suburban areas, but they are experiencing growth.

@Rick C. Tampa is undergoing a transformation. Tampa Heights is by far my favorite area to buy and hold due to my love of downtown and the variety of construction. Fix and flips generating 20% COC returns in that area are common, but entry prices in those zip codes are rising. Seminole Heights is creeping both North and East, so I'd look a little bit more in either Egypt Lake-Leto or Ybor if rental property appeals to you. In the end, if you want long-term rental property in Tampa with solid CAP rates I wouldn't overlook Brandon. It's access to both Tampa and Orlando by way of Selmon Expressway/I-75 makes it an area lure for those of us who love Tampa but don't mind a commute (which is most of us).

Thanks everyone. I drove through a lot of Southeast Seminole Heights (i.e. south of Hillsborough between Nebraska and N 15th St) when I was in Tampa last week. Although I liked that neighborhood, I did also notice that it has already started to get pricey when compared to some of the neighborhoods that border it.

I plan to hold for awhile, so I am fine with cash flowing neighborhoods that have not yet gentrified much, but have a good potential to begin gentrifying a few years down the road. With that criteria in mind, if I were to look in surrounding areas, how far east of N 15th Street and how far north of Hillsborough Avenue would you recommend I go?

Riverview / gibsonton / apollo beach area has some great properties down there. you just have to find the deals.

There is a new hospital open off Big Bend Road and the Amazon warehouse one exit down ruskin/sun city.

That area will also have the new boat fairy going in just north of the power plant. That will appeal to the Military buyers, due to ease of transportation around the bay.

Aaron T., Elite Developers of Tampa Bay

@Doug Merriott 's suggestions were great and also Ybor city. You can get cheap properties now and the area is really changing and becoming much more popular. I'm in Tampa and new to BP. I'm just getting into investing and have to investors that I have firm commitment for finding for rehabs/flips! I'm super excited and ready to go. I'm hoping I'll be able to do a few rentals after that. I'm not a realtor but feel free to contact me if you have questions or want to work together. I can always take a look at perspective properties. I love looking around. :)

Any thoughts about the area around St. Jo's Children's Hospital, specifically north side? Is anyone aware of city development plans for that area?

Andrea, 

I think the east side of the river is the better place to be in, but with that said I have seen some nice homes to the west. Tampa Heights and North Hyde Park are probably where gentrification is going to move the quickest. Soho Capital has finished acquiring all of the land they want for "The Heights", and they should be building soon (Armature works building already being worked on). 

Originally posted by @Andrea W. :

Any thoughts about the area around St. Jo's Children's Hospital, specifically north side? Is anyone aware of city development plans for that area?

That is a good area to invest. There is a big latin community presence on the west side of the river between Hillsborough and MLK with the western dale mabry backstop. values are still reasonable in those areas too.

Aaron T., Elite Developers of Tampa Bay

Originally posted by @Steffen Beck :

Andrea, 

I think the east side of the river is the better place to be in, but with that said I have seen some nice homes to the west. Tampa Heights and North Hyde Park are probably where gentrification is going to move the quickest. Soho Capital has finished acquiring all of the land they want for "The Heights", and they should be building soon (Armature works building already being worked on). 

If you want to get in the NOHO, better do it quick. look north of Kennedy and east of howard. all those houses are going to be the new SOHO. especially with the west river front project going on. the wood houses will be knock downs, the CBS will likely be rehabbed if they still have good bones.

I picked one up in there a couple months ago and its going to be a great rental for several years as the value climbs.

Aaron T., Elite Developers of Tampa Bay

With the expansion and construction on The Veterans, there are some communities in the NW that may be good long term bets. I also think New Tampa has had some huge improvements with the huge overhaul on Bruce B Downs. May be a little late in that area but further north up that road seems to be exploding.