Househacking Small Multi Family in Tampa

[Eric Wittenburg]

Me and my fiancé are moving to Tampa this summer.  We are interested in purchasing a small multi-family property (2-4 units) to house hack. We are currently saving up capital for the down payment and could close on the right deal as soon as the beginning of 2024. 

One thing I've noticed about the current Tampa market from zillow, redfin, etc, is that there are significantly fewer small multi-family properties on the market compared to my native Minneapolis, MN. Is this normal for Tampa? Does Tampa have a lower inventory of small multifamily properties relative to other metro areas in the United States? Any insight would be appreciated as we continue to learn about this market. 

[Josh Green]

@Eric Wittenburg

Your observations aren't unusual. I do a lot of house hacks, STRs, LTRs, etc. I have done 3 house hacks myself and I'll tell ya you need to be creative here for good returns.

For example, I have a client looking at duplexes and the last one we offered on (very strong offer, 10% above asking price) got 30 offers in less than a week.

Depending on your situation, I would suggest different strategies. I'll dm you and we can do a video consultation to see what would be a good fit for you!

[Katherine Blazer]

If you are planning on living in one unit like a true house hack, then you don't need a super large downpayment. You should be able to qualify for traditional financing, FHA/Conventional as a primary for 3-3.5% down. With these loans, you can use some of the projected rental income to offset the mortgage payment on your DTI also. You can even use 203k and homestyle loans on 4 doors or less.

In regards to finding MF properties in Tampa Bay, it seems like a lot of people are looking at them so know your area and be ready to move quickly!

[Doug Smith]

Tampa is one of the most desirable markets in the country. Everybody and their dog seem to be looking for small multi-family. When a decent one hits the market, it's a blood sport to buy them. Many of them that hit the market are in higher-crime areas. You're right, there's not a lot of existing small multi's out there. 

[Raymond J. Rodrigues]

@Eric Wittenburg, definitely reach out to @Josh Green. 

[Luke Rorech]

@Eric Wittenburg

Pinellas County is going to have a much larger selection than Hillsborough County. As others have mentioned though, small multi deals are very competitive and still in high demand. 

Another option to consider is sfh w/ an adu. Still competitive but an added plus to that is you can go 5% down conventional instead of having to go 3.5% down fha or 15% down conventional, as you would need to do for 2-4 unit properties.  

Redfin has a solid search function to view sfh with guest houses if you click that option. 

Let met know if you have any questions or want to discuss in more detail. 

[Obed Calixte]

@Eric Wittenburg

Luke made great points in his post.

You can also look for sfh in areas that allow for ADUs to be built, if one does not already exist. FHA 203K, Homestyle or VA Reno loans are options to roll in ADU buildout into the mortgage. Would need to qualify for the mortgage amount and it appraise etc, but another option.

[Ryan Thomson]

@Eric Wittenburg I find multifamily to be a little harder to find in my market as well. We sometimes get creative with single family homes by creating a "separate unit" in the home or even converting a garage. That may work for you.