Purchasing Tampa real estate doesn’t have to be about finding your dream home. Real estate is a wise investment, especially in the undervalued market of Tampa. Many buyers look for homes that can be flipped, however the majority of real estate investors look for properties that can be rented out for a profit. If you’re ready to make the move into the real estate industry and purchase rental properties, follow these tips:
Research property taxes.
When determining how much you’ll actually profit every year with a rental income, don’t forget to factor in the property tax. Tampa real estate property tax can vary greatly depending on the location, so do your research and look up how much the fees have been over the last five years. If you don’t think you’ll make a sizeable profit after factoring in property tax, insurance, and other maintenance costs, move on to the next listing.
Tenants will not want to live in, much less pay high rent, for a property in a neighborhood with high crime. Do a simple Google search of the specific neighborhood that you’re looking in and see what the crime reports are. You should specifically look for rates of vandalism, theft and petty crimes which usually are found in neighborhoods that are about to decline in value. If you are hoping to attract families as tenants, steer clear of areas with frequent crime.
Before you invest in Tampa real estate, it’s important to figure out what the average rental price is in the neighborhood. Do you notice any “for rent” signs on nearby streets? If so, call the number listed and talk to the owner about how much he or she is charging per month. This will give you a good, honest idea of how much you would be able to get if you decide to invest. But, be careful! If there are too many homes for rent in the same area, this could signal that it’s hard to find tenants or that the neighborhood is undesirable. When too many owners are fighting for tenants, prices will drop and you won’t make a high return on your investment.
You can’t look into the future and predict what will happen to the Tampa Florida real estate market, but luckily, you can get a little help from the city’s planning department. Here, you’ll be able to look through public records of what plans are in place for your neighborhood. Are there major shopping centers in the works? This could mean that tenants will be more attracted to your neighborhood than they are today, signaling a wise investment. However, if there are plans to develop new condos or apartments, you could be facing major competition for tenants down the road.
The first step to investing in Tampa Florida real estate is calling an agent to guide to you through the process. Contact the experienced agents at Coast 2 Coast Realty at 1-877-585-RELO for help with buying and selling Wesley Chapel homes.