tampa investment real estate

5 Reasons to Buy a Tampa Real Estate Investment

So, why exactly should you become a Tampa real estate investor? Here are five reasons to by a Tampa Real Estate Investment:

5. Affordability

Tampa investment properties for sale are also very inexpensive, a staple of buying a rental property in Florida. While the city’s median property price is slightly higher than the national average, its property prices are affordable, nonetheless. The price of the average Tampa Real Estate Investment in the city’s best neighborhoods, however, is less than both the city and national medians. What’s even better is that five out of the six neighborhoods to be mentioned in this blog have Tampa houses for sale that are less than $200,000!

4. Strong Economy

Tampa also has a strong economy, which is another common feature of why this area in Florida is a good place to invest. The area is home to many Fortune 500 and Fortune 100 companies. The city also acts as headquarters to 19 companies, generating annual revenue of over $1 million. Tampa’s economic sector includes finance, healthcare, insurance, national defense, and tourism.

Tampa also fares better than the US and the State of Florida in several economic categories. Its unemployment rate is just 3.5% while the state’s is 3.8%, and the nation’s is 3.9%. Over the last year, Tampa has had a job market growth of 2.3%. This is significantly higher than the national rate of 1.6%. This growth is expected to be long term, as the predicted job growth in Tampa over the next decade is 42.7%. The US average for this statistic is 33.5%. These economic trends heavily contribute to the success and appeal of every Tampa real estate investment.

3. Growing Population

Another factor influencing the number of Tampa houses for sale is its population growth, which is heavily tied to its strong economy. Tampa has had a population growth of 10.34% since 2010. By comparison, the national growth rate since that time has been 5.96%, this makes Tampa one of the fastest growing cities in Florida and the US as a whole. Aside from the abundance of jobs, many are flocking to Tampa, and Florida in general, due to the state’s lack of an income tax, compared to the 4.6% US average. Tampa’s sales tax rate, at 7.0%, is also lower than the national rate, 7.3%. The combination of these factors widens the pool of tenants for a Tampa real estate investor. As a result,more than 50% of Tampa residents reside in a Tampa rental property. This makes for a huge amount of opportunity in Tampa as a good investment market. This is the 3rd reason out of 5 reasons to buy an investment property in Tampa Florida.

2. Real Estate Prospects

Another reason why purchasing a property in Tampa is, and will be, a great investment is the ample amount of investment opportunities. While most markets in the US are seller’s markets, Tampa is finding the fine-tuned balance between a buyers and a sellers market This is largely due to the rise in construction of single-family homes, which has increased by 12% or 20,000 permits, in the previous year. 

Tampa was also ranked the second highest in homebuilding prospects for 2019 by the PwC. It is also in the top 10 for overall real estate prospects for 2019 in the same report.

For help with your investment property call now 800-826-5077.

2b. Airbnb Success

The average Tampa real estate investment has excellent Airbnb potential. But before we dive into it, is Airbnb legal in Tampa? The answer is yes. You can read more about the city’s Airbnb regulations, such as its 5% Tourist Development Tax, on Airbnb’s page.

It is an understatement to say that the Tampa vacation home market is profitable. The Tampa Bay region, for instance, generated over $113 million in Airbnb revenue in 2018, accounting for roughly 14% of all of Florida’s Airbnb income. With the city’s sports teams, Florida weather and beaches, and cultural events, it’s easy to understand the success of the Tampa short term rental market.

#1. Profitability

First and foremost, Tampa rental properties are lucrative investments. Both Tampa short term rental and traditional rentals generate high rental income and return on investment, as seen in the previously mentioned data. These numbers only represent averages, meaning that most Tampa investment properties will likely boast higher figures. Also, the best neighborhoods which will be mentioned shortly, have higher values than the city average.

Best Neighborhoods for a Traditional Tampa Real Estate Investment

The best locations for a Tampa Real Estate Investment

East Ybor

  • Median Property Price: $162,972
  • Price-to-Rent Ratio: 12

Traditional

  • Rental Income: $1,169
  • Cap Rate / Cash on Cash Return: 3.5%

Woodland Terrace

  • Median Property Price: $184,000
  • Price-to-Rent Ratio: 12

Traditional

  • Rental Income: $1,334
  • Cap Rate / Cash on Cash Return: 3.3%

Ybor City

  • Median Property Price: $176,465
  • Price-to-Rent Ratio: 12

Traditional

  • Rental Income: $1,206
  • Cap Rate / Cash on Cash Return: 3.1%

Best Neighborhoods for an Airbnb Tampa Real Estate Investment

Want to know the best locations for investing in vacation homes in Tampa, FL? According to Mashvisor, these are the neighborhoods you should focus on:

Palmetto Beach

  • Median Property Price: $275,967
  • Price-to-Rent Ratio: 17

Airbnb

  • Rental Income: $4,666
  • Cap Rate / Cash on Cash Return: 11.1%
  • Occupancy Rate: 45%

Terrace Park

  • Median Property Price: $131,696
  • Price-to-Rent Ratio: 10

Airbnb

  • Rental Income: $2,237
  • Cap Rate / Cash on Cash Return: 8.5%
  • Occupancy Rate: 59%

Sulphur Springs

  • Median Property Price: $135,216
  • Price-to-Rent Ratio: 12

Airbnb

  • Rental Income: $1,848
  • Cap Rate / Cash on Cash Return: 7.3%
  • Occupancy Rate: 53%4
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