Hi guys and gals,
I have got financing for purchasing a property for 200k! and I am looking at purchasing in Tampa Bay. I would absolutely love if someone could suggest which micro areas would be the best ones to look at??
I am hoping for some help and I will be able to document my purchasing journey throughout so that I can help others avoid the pitfalls that may occur to me.
So would really love it if anyone could advise me on some nice investment areas within the Tampa Bay area?Many thanks
Stuey
HI Stuey,
What is your reason for purchasing in Tampa Bay? Are you a first time investor? just interested in what your investment goals are
Jeff
That's the way Stuey, I have noticed that not enough people support each other here on these forums. I don't know the previous guy (jeff2investUSA), but I bet any money he wants to sell something to you. probably a property in the US. Mate go for it! By all means let us know how you got the financing as well.
I have an old uni mate who lives somewhere in Florida if you would like me to ask for you.
cheers
Hi Jeff,
Reasoning behind investing in the US is to take a counter cyclical approach, take advantage of the overvalued AUD and the incredibly low interest rates and I have a long term horizon so I can handle the more volatile and risky investments in areas such as Tampa Bay, Miami etc…… Tampa Bay in particular because it has some of the best leverage to an improving US economic outlook ie it's unemployment rate is at 13% whereas it used to be for an extended period of time in the 4-5% range and lower.
Chris, appreciate your support! I will keep you updated on my progress…….and if you happen to speak to your uni mate would be stoked to hear his perspective specifically on the best and nicest areas to invest in Tampa Bay!
Hi Stuart,
Can you let us know a little about how and where you got your financing. Was it in the US?
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Stuart,
I have been investing in the USA. and in Australia for many years so I do speak with some authority, to invest in area’s that have such a hight vacancy rate means that your investment will sit there vacant for months…my brother in law purchased 4 properties in Atlanta with the advise of a local company which I will not name here, over 6 months ago, he has only rented 3 properties and the other is still vacant.
Have a look on Zillow.com and see the figures for Tampa Bay, very scary if you were to invest any money there. it is like a giant ski sloop.
Investing in the USA needs dilliigence not romantic ideas of Palm trees, coconuts, and all the nice images that Florida has.
The nuts and bolts of investing is the ROI having a property that gives you a regular income year in & out, after all you are not going to live in Tampa Bay……maybe you are…that would be a different story.
I have read so many people wanting to invest in Miami…or other area’s in Florida it is a worry. in a years or two we will be reading of all the Australians that did there dough in Florida.
Chris……I don’t know you or if you have invested in the USA or here in Australia, there are plenty of people wanting to sell USA property, and to be honest I do sell property in the USA, however Stuart and others are free to do as they choose, my main purpose is to advise for free what is available if one is to think outside the Florida square. I do have partners in the USA that are property investors who I work with that know there market….are honest……and are not interested in selling people property that will not perform.
Jeff
We have an office in Ft. Myers and one in Tampa. We also have an office in New Jersey. It is no coincidence that domestic and international investors are buying a lot of properties in SW Florida, especially Tampa. A lot our our NJ investors are focusing their time in Florida. The Tampa area is very big and even though you can get a nice house for $150k in some areas, that doesn't make it a good deal. Until you speak to a property manager to verify rental rates, don't take anyone's word for it. I have received calls from AU investors asking me rental rates in certain areas. As an example, the area that was queried is an area where rental rates are $800 per month. The AU investor sent me a proforma on a house where the agent represented $1,200 per month. Very inaccurate, and had that investor purchased this house, they would have been very disappointed when faced with reality.
That being said, Tampa is the strongest area of Florida right now and despite the horror stories in FL in the recent past, values have stabilized as well as rental rates. There are great deals in the area and in a lot of areas, for the right purchase price, your ROI can be pretty high. Most of the shadow inventory that you hear about has already been sold and even though there may be more, Florida is far more ahead in terms of shrinking inventory than most areas nationally.
Vacancy rates are very low as homeowners that have been foreclosed transition to being renters and yes, in some areas prices are going up. The recent foreclosure listings pullback by the banks have already lowered inventory tremendously. As the current inventory sells, banks will slowly start releasing their REO's to sell at the increasing rate of absorption. It means more money for the banks as more buyers enter into bidding wars.. We get a lot of the listings from some of the banks in our areas and the people we have spoken to believe the same thing.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeHi Cheeves, thank you very much. I can tell you have a strong property knowledge base and I appreciate your advice!
One thing which raises alarm bells for me is the fact that the case shiller index in the tampa area is still decreasing, although this is a 2 month lagged index, it appears to be one of the few areas which hasn't hit bottom yet and bounced off trough levels. However, I have time on my side and will be looking to actually make the purchase in 3-6 months thus I am not overly troubled by this.
Have you heard of any areas in particular which have forecast strong capital growth?
Or even if you were to buy a rental property where would you purchase?
I have noticed that inventory levels have come down dramatically in Tampa as well, albeit the decline depends upon which measure of inventory is used.
What is the name of your company's offices? I will be coming over there in late Jan-Early Feb.Many thanks,
I am currently living and investing in Fort Myers. There are some terrific deals but someone on the ground is really what you need. It is a lot different here to Australia which is why I am here buying and not doing it from home. Miami and Tampa both have some really seedy areas and both have some really good areas. Contact a Realtor and ask to be placed on an email alert list of properties available in your area of choice. This list can be expanded by price or area as required.
Hi ActToday,
Any particular reason why you choose Fort Myers?
Are you able to recommend a realtor in the area?
Would love it if you were able to share some information so that hopefully I can avoid some of the pitfalls that befall a foreign investor, especially since it is so different.
Cheers,
I chose Fort Myers as I have contacts here through Tax Lien investing. There are a lot of opportunities and I have found a fantastic Realtor that calls me every day, a Bank Manager that always takes me into his office, fills out my forms and lines up to do my banking while I sit in his offfice, love the climate, people and lifestyle. I have four properties here now. E.mail me [email protected] and I'll give you my Realtor's details.
@ Stewartwm:
My Tampa office is off of Dale Mabry. My personal investments are in affordable housing in and around the Tampa area. I look at the Tampa area such as Tampa and Brandon. I just care about being near industry and jobs, low vacancy rates, and non-warzones, which Tampa doesn't really have anyway. I just bought a house in Tampa on the border of Brandon for $80,000. It rents for $1250 per month. Taxes, insurance and Prop Mgmt is cheap so my ROI is high. Cap Rate about 15-16%. My personal concept is that I am going to base my investment off the cash-flow. If the property goes up in value, then that is a bonus. I'm sure it will but I don't count on it with my investment concept. I don't look at condos. My opinion…condos are a bad investment these days and you are at the mercy of the association. I just won't do it. Some do and that's fine…just not for me. I look for cash flow…I made a ton of money and lost a ton of money in the crash so I am going back to the old fundamentals of real estate investing which is cash flow….not speculation… Case Shiller I follow very close. Tampa may or may not be at bottom. Assuming the market drops another 10% (which I don't think it will), my cash flow will off-set the loss over a long term investment of say 5-8 years.@ ActToday:
Good choice!! My headquarters is in Ft. Myers. On Route 41 next to the Cadillac dealership and Bell Tower Shops. (Can't miss those landmarks!). I invest in Tampa and the Ft. Myers area as well as service my investors in each. Ft. Myers has a lot of good opportunities. Lee County (Ft. Myers, Cape Coral, Lehigh Acres) was beaten down by the foreclosure mess but it allowed this area to drop the fastest and hit bottom the fastest. You'll laugh at this, but the median home values in Lee County went from $345k at its peak to $82k in February 2009. Crazy huh? Today we are just under $100k. It's one of the only markets showing a consistent increase in prices. Foreclosures are WAYYYY down this quarter which is a great sign. Same thing here as in Tampa. You want to buy for cash flow. Appreciation is bonus.If you can stick to the basic fundamentals, Florida investing is the best. If anyone is familiar with the Robert Allen approach to investing, doing that strategy NOW in Florida will make you rich in 10 years. I have a 5 year plan with an option for 10. Long gone are the days of becoming rich in 2-3 years. Anyone that says different, I'll slap them with a wet noodle! FYI, regarding the Case Shiller index, if you take condos out of the index, the Case Shiller would be MUCH better. CS is a great tool, but don't be mislead to bulk all real estate into one index rating.
Feel free to ask any questions and I will be happy to assist in any responses. For those that would like any references, websites, suggestions, accolades, etc, feel free to PM me or e-mail me at [email protected].
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeCheevesFinancial. I just might call to arrange a meeting one day. I go to the markets at Bell Tower weekly. Condos are a definite no no for me too. I like single family over duplex too even though the return is a bit less. More stable tenants, particularly if you are near good schools as you mentioned.
Judith,
I am open anytime. I am in World Plaza Commercial Complex behind the Val Ward Cadillac dealership. A couple of real estate investments that are popular around here are the following:- Lehigh Acres duplexes: I own 4 of them (2 on Eisenhower / George Ave S, and Gilbert) and the cash flow would pretty much cover all my monthly bills if I didn't buy through my self directed IRA. Some people like Lehigh, some don't. I'm one that likes. My tenants are great, in fact 1 of them Section 8 who is probably my best tenant. International and local investors like the economics. $15,000 Annual Revenue, $3,800 in operating expenses. That includes $1,600 property taxes, $1,000 insurance, and $1,200 to my Property Manager. I don't manage my properties nor do I manage any of my clients properties. I focus on duplexes built 2006 or newer so really no other expenses yet. Net Operating Income of $11,200 for a duplex that cost me $75,000. Actually $68,000 + some rehab work. Go to http://www.MyRealtySource.com which is our website and watch the video on duplexes. They are pretty nice. My intention is to hold for 5 years. My value is already up, but my cash flow is most important. I buy through a self-directed IRA, so cash flow is not taxable. Replacement cost $180,000
- Cape Coral single family homes- I don't own any yet, but I will. I'm looking at one now that is $79,000. Gator Circle area (don't let the name fool you…there are no more gators there than any other area of FL.) It's currently bank owned with a tenant paying $900 a month or $10,800 annually. Total Operating Exp is $3,000. Yes, cash flow is less than duplex but still decent. Good area, near downtown Ft. Myers, etc…Replacement cost = $150,000.
- Ft. Myers: I've sold some condos in Ft. Myers to mostly international investors. They have bought in stable communities such as Gulf Harbor and Lexington. The associations there are pretty healthy and you can buy a really nice condo for about half of peak price. These are for those second homers that like boating, golfing, fishing, etc…and the good life. The communities built during the boom, which unfortunately is most of them, I wouldn't touch with a 20 foot fishing pole.
- Lehigh Acres Single Family: I own a house on 2nd St. SW. I paid $50k for it and put $5k into rehab totalling $55k. You can buy cheaper out in Lehigh but the area is probably superior to most. Here is a link to see a picture: 2nd St House. It's rented for $850 a month and I get a check for $782 every month after my Prop. Mgr extracts their fees. Minimal operating expenses. Taxes are $1,200, insurance $750, management is $816 annually. Have had no problems with tenant or home issues.
Anyway, that is my 2 cents on what is favorable in the area. As you know there are no real "war zones" in this area. Sure there are lower income areas, but far from war zone. Probably why investors favor SW Florida.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeHi Cheeves Financial,
Thanks so much for your assistance. If you were to purchase in the Tampa area specifically which suburb would you focus on, ones which have stable underlying fundamentals such as jobs, population growth forecasts etc.
I guess the problem I am grappling with at the moment, made worse being from the other side of the world, is narrowing Tampa down to one suburb or micro area where the underlying fundamentals are supportive of actually finding a tenant and also supportive of capital appreciation.
Also, actually since you have your offices in Fort Myer's which suburb would you recommend to invest in for an investor who wants to find an investment property that is close to jobs, transport, schools etc.
Also, what specific services does your office provide? I would be very keen to have a "person on the ground"!Thanks so much.
Hi Stewart,
As far as the suburbs of Tampa, I would look into Brandon. I have purchased some homes there. They are older, but with a few dollars can be fixed up really nice. Rents are high since downtown Tampa is only a 15 minute drive. All of the growth factors that you mention such as jobs, population forecasts, etc are all leading indicators for the Tampa market as both have recently started to improve. My partner and I have a home in Brandon and Tampa. Both very similar areas only 2 miles apart. It was more of a numbers game for us.As far as the Ft. Myers area, see my previous post. I stated what I own so I guess I recommend them
. I mentioned for instance, in Lehigh Acres, my investment is cash flow ROI. I'm confident in appreciation but my cash flow is what makes it a sweet deal. More of speculation investing is in Ft. Myers, where cash flow is lower…much lower. Cape Coral you can get decent cash flow also. As far as my firm's services, we provide sales, pro formas, and a reference to Property Management.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeHi Cheeves Financial,
All of your information does sound very interesting, I have always been more interested in hearing about actual examples as oppose to potentials.
We are looking at investing in the USA, and are trying to get everything set up so that when we go over there around June next year we will be ready to purchase something.
Could you please email to the address below and perhaps we can discuss things a bit further.
Thanks
. I mentioned for instance, in Lehigh Acres, my investment is cash flow ROI. I'm confident in appreciation but my cash flow is what makes it a sweet deal. More of speculation investing is in Ft. Myers, where cash flow is lower…much lower. Cape Coral you can get decent cash flow also. 
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