All Forum Posts by: Jonathan Henley

Hello Sean,

I'm not sure how long it's been since you last visited Sarasota, but the area has boomed lately. Tons of new shopping developments and residential builds. It's definitely gone high-end, and $150-$200k won't get you much there anymore. I personally live/invest in Tampa. That budget will get you a great SFR around here, depending on where you look. Tampa Heights is an excellent option (though getting pricier all the time) and the surrounds of Old Seminole Heights are worth looking into. Multi Family is still very hot here and the properties you'll find in that price range are C or D level duplexes. If you're up for some work there are still good opportunities to be had. I've never lived in Orlando (only been there a thousand times) but it seems like there is a non-stop flow of new vacation rentals and timeshares. Too much competition from my point of view. Never been to Charlotte so I can't comment on that one.

I hope you consider Tampa; it's a great place to live and still seems to be on the upswing!

Jonathan

I've lived in the area since 2009 and it is definitely improving.  The city has recently bulldozed a large number of block buildings that had been used for affordable housing, which caused quite a few people to get Section 8 vouchers and spread out into single-family homes.  I even heard recently that a "tiny-home" community was being planned for the area to alleviate the lack of housing available now that the block ghetto-like neighborhoods are gone, which would certainly be an improvement over what was there.  

I am personally skeptical about how much things will improve as a result of the stadium relocation (just look at the immediate surroundings of Tropicana Field and you'll see that it isn't a cure-all by any means).  I think a lot of the value increases will be speculative and might not last so I've been hesitant to jump in on that.  

I'm also mindful of the possibility of TBX getting approved, which would cause I-275 to widen significantly.  I've passed on several houses that are smack-dab next to the interstate in Ybor Heights.  They looked good on paper but I'm in it for the long haul and I don't want to be forced to give up the property in a year or two because the government is expanding the road (there is a lot of local pushback on TBX so it may not happen at all).

The closer you can get to Tampa Heights the better off you are, in my opinion. Prices are higher there but the clientele is usually better heeled and interested in the good restaurants nearby (think Ulele or the new TAW Food Hall and the Riverwalk). On the other end of the boundary you have the Seminole Hard Rock casino as a potential draw for renters. If you go a bit further east it's still possible to find low-priced SFR's, but I've found that renters close to the casino tend to be employees of the casino, and they don't always last very long. Could be great for AirBnB, though!

I hope you find something; Tampa is a great place to live.

Sinkholes are tough to deal with.  I often see properties with remediated sinkholes at a big discount, but I haven't taken the plunge on one.  Sinkhole coverage can be outrageously expensive, if it is available at all.  My houses are insured by a major company in FL and they will not issue any new sinkhole policies.  At the least, know that it is HIGHLY unlikely that a basic homeowner's policy will cover them; you need to specifically request that kind of coverage.  I'm sure others have had different experiences, but in the 30 years I've lived in Pasco I have never seen or been affected by a sinkhole.  It is certainly a risk, but it isn't high on my list of concerns when buying a property.

I grew up in New Port Richey so I know the area well, and I'd say picking up a decent house for 50k (even with the roof violation) would be a steal. I'm not sure how your COC is coming out so low though...are the insurance premiums really high? I just purchased a SFR in Tampa (contract inspections are today) that was listed at 75k and went to contract at 62k without any further negotiation, right off the MLS. It needs about $9,000 in repairs and I'm putting 20% down, but even after figuring that in I'm sitting at 20.7% COC return assuming a lower-than-market-value of $1,050 in rent. Getting a COC over 10% is DEFINITELY possible in New Port Richey, so I would double check all your numbers. If you aren't getting that then it probably isn't that great of a deal. Hopefully you just have a number in the wrong spot and that's artificially reducing your return. One mistake I made a few times was when entering the cost of insurance: I would enter the annual premium but the calculator is actually asking for the MONTHLY premium. That threw my numbers WAY off! NPR is a nice place to live and the Old Town/Main Street is being fixed up really nice. Good luck with the offer!

MLS listings will typically have a flood zone section. If you see Flood Zone: X then you know flood insurance will NOT be required. This is a good sign and is the first thing I look at when the property is close to the beach. I am always surprised by which properties do and do not qualify as being in a flood zone. When looking at wholesale or off-market deals from places like Craigslist I always ask right away if flood insurance is required. Frequently, very good-looking deals get much less rosey when you factor in this large (and highly variable) cost.

Unfortunately I'm too new to give you great recommendations but my past year of searching has taught me that, if you aren't tied down to a particular area, South St.Petersburg is a great place to start. I have bought a few SFR's in Tampa but have been looking in Clearwater, St.Pete, Plant City, and Wesley Chapel. Inventory in Tampa is getting up there in price (everybody wants to flip in Seminole Heights) but St.Pete consistently has solid SFR's in the sub-100K range. Watch out for flood insurance requirements (that is a real kicker) and know that one or two blocks can make a HUGE difference in South St.Pete. The northern part is definitely better (and thus more expensive) but it is starting to trickle down south. If they weren't 45 minutes from my house or I wasn't self-managing then I would be focusing on that area.