Tampa is currently a hot area for investors who are looking for great properties with a lot of potential. It’s easy to be successful with Tampa rental properties. Today, we’re discussing some of the commonalities among investors who are successful in this market.
Why Invest in Tampa?
Tampa is getting a lot of national attention because it’s been identified as a great place to invest in rental properties. There are lots of great reasons to buy investment property here. People are showing up because of the beautiful weather, the proximity to beaches, and the engaging downtown area, where people can eat great food, enjoy a lot of culture, and take in professional football and hockey games.
Tampa is a great place to invest. There’s a wise saying in real estate investment circles: you make money when you buy. This is especially true of the opportunities in Tampa. You have to do your due diligence and make sure you’re making a sound investment in a great location, but it’s pretty easy to succeed in the Tampa real estate market. This makes it a great place for both new investors and experienced investors who are interested in adding to their portfolios.
Tampa Investment Success: Data vs. Emotion
When you’re choosing a Tampa investment property, consider location, condition, and amenities. You want to make sure you’re selecting a home that residents will find attractive. Do some math and make sure the rent you anticipate earning will be above your expenses. Successful investors understand that they’re not hunting for a home they’ll live in themselves. They’re looking for a property that good residents will find desirable and attractive. They need to know they’ll earn high rents and face low expenses.
To succeed, find a sound investment. If you’re not sure what’s going to make a sound investment, get to know the Tampa real estate market a little better and talk to some experts. You want to buy in a desirable area that people want to live. As the years go on, you’ll want to increase both rent and demand. Successful investments make choices that meet those goals.
You’ll notice we didn’t say anything about emotions or feelings. We didn’t say you should charge whatever you think your rental income should be. Data is more important than feelings when you’re investing in Tampa real estate. This is the most common trait you’ll find with successful investors; they treat their rental investments like businesses, and they don’t make decisions that are emotional.
Settle on a rental value that’s based on comparable rents in the area. Find out what the numbers tell you. If your investment strategy is to have positive cash flow, make sure the numbers make sense for that goal. Your location also needs to be driven by data.
Successful investors do not allow their emotions to dictate their actions. They go off the data and the numbers and they stick to their investment plans. Decisions follow a consistent pattern and they believe in their standards and systems. Plans and strategies are put into place to meet their goals and expectations. If they don’t have a necessary piece of information or they realize they’re lacking a resource, they’ll ask for help from a professional.
Make decisions based on data, not emotions. This is absolutely critical.
Current Tampa Investment Trends
In Tampa, both rents and prices are increasing steadily. There are still some great opportunities to buy good rental properties at low prices, especially when you compare the buy-in requirements of other cities on the east coast of the U.S. It’s always our goal at Mynd to get the most rent possible out of a rental property. For this reason, we like to steer people towards investment properties that are move-in ready. Successful investors don’t bother buying distressed properties that need a lot of work, even if those properties are cheap. Look for a home that’s fresh and painted and ready to occupy.
A move-in ready investment property will rent faster and to more qualified residents. You’ll have a larger pool of applicants interested in the home. There’s a lot of demand in Tampa, so successful investors are raising their rental amounts steadily. Rents are going up and it usually takes two to four weeks to rent out a vacant property.
In the past, the number of out-of-state investors matched the number of local investors. Now, we’re seeing a higher percentage of investors from outside of Tampa and even outside of Florida. Everyone is hearing great things about Tampa, so we’re getting a lot more interested in this market.
Many local owners are also becoming investors because they decide to hold onto their home instead of selling it. Maybe they’re upgrading and moving into a nicer property, and instead of selling their first home, they’re renting it out. This is a successful investment strategy in Tampa as well.
There’s a buzz in Tampa, and technology has helped. Mynd Property Management, for example, is in 16 regions across the country. We can leverage our data and help investors see what regions fit their investment strategy. Maybe you’ll want an investment in San Francisco that has a negative cash flow, but that’s okay because you have a handful of properties in Tampa or Houston that are achieving a positive cash flow. Before the gains we’ve made in technology, investors could not do that. Now, smart decisions can be made by educated investors.
If you would like to experience success as an investor in Tampa, please contact us at Mynd Property Management. We can help you identify an investment opportunity in the local market, or provide professional property management for a Tampa rental property that you currently own.
We also have other opportunities to connect with us and learn more about investing in Tampa. You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.