Skip to content Sitemap

Best Areas in Tampa to Invest In

tampa-areas-investing

Are you an investor looking to buy and rent out single-family homes? If so, the Tampa Bay area is a good place to do it. In fact, Tampa finished third on Business Insider’s list of the best cities to invest in real estate for the second consecutive year.

So, why is Tampa ranked so highly for real estate investing? Here is why:

  • The quality of life is exceptionally good.

Tampa offers world-class tourist attractions. Some of these attractions include the Tampa Bay History Center, The Florida Aquarium, and the Busch Gardens.

The city is also home to excellent hospitals, police and fire departments, libraries, schools, and other services.

Tampa also offers a variety of recreational options, including nearby beaches, cultural events, and professional sporting events.

  • Tampa ranks among the best 15 counties in the country for flipping homes.

Manatee, Sarasota, Pasco, and Hernando in the Tampa Bay area are especially high performers in this regard.

And, data from RealtyTrac shows that the return for flipped homes in one Tampa zip code is 130%.

  • Tampa is one of the best cities for buying rental properties and flipping houses.

This is essentially because of the high demand for housing, which translates into cash flow and profits for real estate investors.

Also, population growth is at all-time high and home ownership is at an all-time low in Tampa Bay, reflecting the pent-up demand in housing.

  • Foreign investments are at an all-time high.

In fact, foreign investors make up a whopping seventy percent of all condominium purchases in Florida. Usually, foreign investors are willing to pay slightly higher prices.

In turn, this drives up the overall prices of the real estate market. Coupled with domestic demand, foreign demand will keep property values climbing.

  • The population is on a steady rise.

There are a number of reasons why Tampa Bay’s population is on an upward trend. One, unlike California, Florida has no state income tax. This makes it a more appealing state to retire. It is understood that lower taxes result in people having more disposable income.

Two, research shows that Baby Boomers are retiring to states with warm weather. Consequently, Florida, Texas, and California will have forty-six percent of the total U.S. population by the year 2030.

Another reason for the influx is due to the variety of job openings available in Tampa. According to Wallet Hub, Tampa ranks as the third best city in the U.S. to find a job. Microsoft, Amazon, and Home Shopping Network are some of the many large companies in the Tampa area.

  • The return on investment on Tampa real estate is great.

It offers a great price to rent ratio. The median rent per month is $1,575, which means the price to rent ratio is 11.8.

Worth over $130 billion, the local economy is supported by the presence of Fortune 500 companies. For example, WellCare Health Plans, Inc., Jabil Circuit Inc., and Publix Super Markets Inc.

In addition to these top-performing companies, there are nineteen companies with headquarters in Tampa that make an annual revenue of over one million dollars.

 

Check Out: Top 11 Reasons Tampa is a Great Place to Live

tampa-real-estate

With that in mind, here are best areas in Tampa to invest:

 

1.   Davis Island

 

Davis Island is a Tampa neighborhood and archipelago on two islands in Hillsborough County, Florida.

Here is why you should buy property there:

  • Traditional Rental Income: $5,324
  • Median Property Price: $847,000
  • Airbnb Rental Income: $4,224
  • Traditional Cash on Cash Return: 2.88%
  • Airbnb Cash on Cash Return: 2%
  • Traditional Cap Rate: 2.88%
  • Airbnb Cap Rate: 2%
  • Occupancy Rate: 54.3%florida-landscape

 

2.   South Seminole Heights

South Seminole Heights is a historic, diverse community that is welcoming, inclusive, and integrated.

Here is why you should buy property there:

  • Traditional Rental Income: $1,291
  • Median Property Price: $299,400
  • Airbnb Rental Income: $1,735
  • Traditional Cash on Cash Return: 2.31%
  • Airbnb Cash on Cash Return: 3.19%
  • Traditional Cap Rate: 2.31%
  • Airbnb Cap Rate: 3.19%
  • Occupancy Rate: 55.6%

 

3.   Old Seminole Heights

Old Seminole Heights offers its residents a rich history, old-fashioned neighborhood charm and is one of the most convenient locations in Tampa.

Here is why you should buy property there:

  • Traditional Rental Income: $1,027
  • Median Property Price: 249,900
  • Airbnb Rental Income: $1,827
  • Traditional Cash on Cash Return: 1.47%
  • Airbnb Cash on Cash Return: 4.32%
  • Traditional Cap Rate: 1.47%
  • Airbnb Cap Rate: 4.32%
  • Occupancy Rate: 56.7%

 

4.   Historic Ybor

Historic Ybor is nothing less than the historic heart of Florida’s city by the Bay. Its charm is found in its bungalows, its active trolley system connecting Ybor to South Tampa, and Channelside, and in its restored brick roads.

Here is why you should buy property there:

  • Traditional Rental Income: $1,255
  • Median Property Price: $194,450
  • Airbnb Rental Income: $1,737
  • Traditional Cash on Cash Return: 2.67%
  • Airbnb Cash on Cash Return: 3.56%
  • Traditional Cap Rate: 2.67%
  • Airbnb Cap Rate: 3.56%
  • Occupancy Rate: 48.1%

 

5.   Tampa Heights

 

Tampa Heights is one of the oldest neighborhoods within the city limits of Tampa, situated in the central part of the city.

Here is why you should buy property there:

  • Traditional Rental Income: $1,161
  • Median Property Price: $310,000
  • Airbnb Rental Income: $1,114
  • Traditional Cash on Cash Return: 1.78%
  • Airbnb Cash on Cash Return: 1.58%
  • Traditional Cap Rate: 1.78%
  • Airbnb Cap Rate: 1.58%
  • Occupancy Rate: 38%villa-home-tampa-heights

 

6.   Tampa International Airport Area

Here is why you should buy property there:

  • Traditional Rental Income: $1,768
  • Median Property Price: $264,900
  • Airbnb Rental Income: $1,541
  • Traditional Cash on Cash Return: 3.64%
  • Airbnb Cash on Cash Return: 1.51%
  • Traditional Cap Rate: 3.64%
  • Airbnb Cap Rate: 1.51%
  • Occupancy Rate: 46.38%

 

7.   Courier City

Here is why you should buy property there:

  • Traditional Rental Income: $2,054
  • Median Property Price: $404,450
  • Airbnb Rental Income: $1,975
  • Traditional Cash on Cash Return: 2.55%
  • Airbnb Cash on Cash Return: 2.55%
  • Traditional Cap Rate: 2.1%
  • Airbnb Cap Rate: 2.55%
  • Occupancy Rate: 47.36%

You might also like: Guide to Buying Investment Property in Tampa

In real estate investing, location is everything. Luckily, Tampa, Florida is among the top 20 locations in the U.S. real estate market, according to the annual study of the PWC. So, if you are looking to invest in real estate this year, seriously consider these 7 places.

Posted by: stephenfox on August 20, 2018
Posted in: Uncategorized