There is a potential condo conversion deal in Tampa, Florida. I don’t know the area (out of state) and I was wondering if this part of Florida is worth investing. How is the market? Are there pockets within Tampa that are still appreciating? How are rents?
Find TampaSteph on this forum. She lives and Invests in Tampa and can help you out.
I lived in Tampa for over a decade and still own rental property there. The market has seen a huge run-up in prices during the past 5-7 years. Prices have since flattened and fallen back in most areas. Property taxes are outrageous for investor properties and insurance can be very expensive as well. Tell us more of the project and what area of Tampa is it located?
Well the condo conversion is in Hillsborough county. The complex is call the Enclave. Basically, this deal is through an investment group where the package lasts for 2 years. They also had a deal on Merritt Island near Cape Canaveral about 6 months back. When we were looking at that deal we also found out about the outrageous property taxes and insurance that was plaguing Florida. So, we bailed and told them why. This time around apparently, the deal in Tampa, the investment group will pay for insurance and property taxes for the 2 years. So, we thought it might be worth looking at. Also, according to Realty Times, one post said that “Amendment 1 passed on January 29th to reform Florida’s property tax system…” Therefore, causing the local market to spur up sales again in the local market. Don’t know if that is true. Have you seen any difference on this passed tax amendment for your investment properties? Have you heard if your tax bill for this year will be dramatically cheaper than last years? Also, an economist wrote about the surrounding Tampa areas and forecast that the SFH will be bouncing back in the next 2 years. However, for condos in the next two years, it will be declining for sales and expect the average prices for condos to stagnate. Any comments on what you’ve seen with your investment properties? Thanks a bunch…
Florida property tax reform has been underwhelming and is geared primarily toward homestead properties. The new legislation limits increases on investor property to 10% annually (as I understand it), which does little to help my cash flow. The real problem in Florida is that non-homestead properties enjoyed no cap on RE tax increases in years passed and with the run-up in property value and out of control government spending we are now stuck with sky-high tax levels. I don’t expect to see any reduction in my taxes this year, that is just wishful thinking. The Bay area has seen a glut of new condos coming to market and I personally would not venture into that arena. I focus my investing on SFH in historic neighborhoods which has proven successful, but even this market has softened.