Renting A Condo in Tampa (Wesley Chapel: real estate market, apartments, renter)

[surelyaffluent]

I was offered an opportunity to purchase a condo as an investment property in the Tampa area. In rearching, I see that Tampa has a relatively growing economy, yet there a more housing units available than the demand. I also saw an article that mentioned there is an oversupply of condos.
Would purchasing the condo be a good choice as a rental property? Can anyone project the estimated turn around time in locating a renter? Are there significant developments in Tampa that will cause the future job market to be even brighter, so to speak?
As much feedback will be greatly appreciated.

[Occifer]

Originally Posted by surelyaffluent

I see that Tampa has a relatively growing economy, yet there a more housing units available than the demand.

That's pretty much the way it is everywhere in Florida given the current housing market.

It all depends on where the condo is and how much it's being sold for. There are lots of condos around Tampa because the runaway real estate market that we had caused lots of apartments to convert to condos. I would avoid buying anything that was a condo conversion, as the construction usually isn't as good and there really isn't much about most of them that sets them apart from each other. Exceptions might be the few in the Hyde Park or SoHo area since they are trendy and popular.

However, if the condo is in one of the new buildings in the downtown or Channelside area and is reasonably priced, I'd consider it. That said, pretty much every one I've seen advertised appears overvalued, especially when you consider the amount of new condos that will be opening in this area in the next few years. One of two things will happen; either people will flock downtown from the suburbs and fill them up or else they will stay mostly vacant and prices will fall like a rock. I think the latter has a greater chance of happening than the former.

I also think it would be prudent to wait and see what happens with property tax reform. I ended up selling the condo I was renting because rising property taxes on non-homestead property combined with rising insurance and association fees were hampering the profits.

[Team_Roberts]

I would like to take a moment and explain a "Cash Flow Club" I have been involved in over the past three months that may help you make your decision. Each month features real estate opportunities to purchase condo's or single family homes as an investment with a guaranteed renter for the next two years and making a positive cash flow between $200 to $500 per month. In order to make this a positive cash flow opportunity, the Cash Flow Club finds housing developments with inventory that can reduce their prices, mortgage companies that can offer a low investment interest rate and guarenteed renters. As the investor, you are required to have a decent credit score and 10% down payment. The goal is to make this a win-win for everyone.

The reason I say all of this is because I personally would feel better with a guarenteed renter and positive cash flow over the next two years then trying to purchase a condo and trying to rent it on my own. I would feel more comfortable purchasing with a little security already lined up. There is a high inventory in condo's and homes compared to years past, so please make sure you do your homework so that you are comfortable with your decision.

I hope this insight helps you with your decision. Moderator cut: advertising
Have a great day!

Mike Roberts

[innervine02]

where can a renter find the listings of these?
I am looking to rent in Wesley Chapel but am in a budget

[Occifer]

Originally Posted by Team_Roberts

I personally would feel better with a guarenteed renter and positive cash flow over the next two years then trying to purchase a condo and trying to rent it on my own. I would feel more comfortable purchasing with a little security already lined up.

And how does this program guarantee "cash flow?" Will it find you a new renter if the one you have breaks the lease? Will they pay you the equivalent to rent for a month or two between renters? Will they pay for the unexpected maintenance expenses that always crop up on rental properties? Will they cover increases in property taxes, insurance, and association fees? Do they guarantee "cash flow" for a period of two years by making the mortgage a 2/1 interest only ARM at a super low intro rate?

If this doesn't sound like a gimmick, then nothing does. As someone who has owned rental property in the past and who has helped manage my family's rental property out of state, I know for a fact that there are no guarantees in the rental business. Renters may back out of a lease at a moment's notice and it's rarely ever worth the legal costs to get them held accountable for the remainder of the lease. Heaters, air conditioners, and appliances break and need to be replaced. Residences need to be repainted, recarpeted, etc.

That said, you probably won't have to replace those big ticket items in the first two years. That might be how this gimmick works. They "guarantee" income for two years, yet after those two years are up you discover what owning rental property really can be like. I would conjecture that the sole purpose of a program like this is to sell properties that otherwise would not sell by targeting vulnerable buyers with unrealistic promises of income.

[Team_Roberts]

To be honest with you, I was sceptical myself until I evaluated the numbers on paper and seen how this worked. One of the key players in this is the renter. The renters are corporations that have employees and clients who travel and need housing during this two year period. The corporation will pay the rent regardless if the property is occupied, thus making this a guaranteed renter. (As guarenteed as anything could be in life. :-) ) The interest rate is fixed at 7% investor rate and the home will be covered by a warranty.

As with all investments, each individual needs to evaluate the risk involved and determine if it is best for them. I personally would rather have a guaranteed renter for those two years than no guaranteed renter at all. It just seems like less risk involved for all of the reasons you mentioned above.