The state of Florida continues to embrace hot real estate markets, and Tampa real estate is no exception!
When you first think of the factors affecting the return on investment on your rental property, the first factor that comes to mind is location. The location of an investment property is, in fact, the first thing that property investors take into account before buying an investment property. For this reason, property investors are always on the lookout for real estate investing markets with a high potential return on investment. A Tampa real estate investor will be happy to hear that the city, once again, is among the top 20 locations for real estate investing according to the 2018 PWC annual study!
Thus, whether you’re a beginner real estate investor searching for your first investment property, or an experienced real estate investor looking to grow your investment portfolio with another rental property, Tampa real estate should be on your list of places to consider.
Related: Top 10 Real Estate Markets for Buying Rental Property in 2018
Before diving into why Tampa is a hot real estate market, let’s first take a look at real estate numbers that property investors should know in order to buy the best investment property:
Tampa Real Estate Market Statistics
Median Property Price: $335,622
Traditional
- Rental Income: $1,636
- Cash on Cash Return: 2.25%
- Cap Rate: 2.25%
Airbnb
- Rental Income: $1,648
- Cash on Cash Return: 1.07%
- Cap Rate: 1.07%
Note: these numbers are calculated using Mashvisor’s Investment Property Calculator
Here are the reasons that made Tampa, FL a hot real estate market:
People are Moving to Tampa
Located on the west coast of Florida, Tampa is a heavily populated city with a population of over 4 million people. According to Forbes, Tampa is America’s #8 fastest growing city, with more and more people moving to the city every year. With these new residents, it’s no surprise to see an increasing demand for residential real estate – especially single-family and multi-family homes – in Tampa real estate. Furthermore, a Tampa real estate investor will have a large pool of potential tenants and doesn’t need to worry about vacancies!
Tampa Has a Strong Local Economy
The second reason why property investors should consider buying an investment property in Tampa real estate market is linked to the increasing population and that is the local economy. “The Big Guava” has a strong local economy (worth over $130 billion!) with a focus on job growth. Tampa is one of the engines of Florida’s economy and is consistently ranked among the top fastest growing cities. As a result, Tampa is a hot real estate market not only for residential but also commercial real estate investing.
Moreover, Tampa has a job growth of 2.1% per year and an unemployment rate of 3.1%. Not only that, but Forbes ranked the metro area as the second best city for young entrepreneurs! Also, according to Business Insider, Tampa is the second best for first time home buyers. Thus, the Tampa real estate market is one of the best for a beginner real estate investor looking for his/her first rental property.
To start looking for your first investment property in any city and neighborhood across the US housing market, click here.
Tampa’s Tourism Industry is Thriving
Tampa has a diverse local economy. We mentioned that it focuses on job growth, but the tourism industry is also booming in the city and is another reason why property investors should consider buying a Tampa investment property.
Tampa has always been on the country’s top tourists’ destinations. As a result, the Tampa real estate market is one of the best places to buy a rental property and rent it out as an Airbnb! In fact, Tampa welcomed 78,700 Airbnb guests last year alone, making up to $10.4 million. Thus, Tampa is a hot real estate market not only for long-term, but also short-term investment properties.
Related: These Are the Best Cities for Airbnb Investment 2018
Different Types of Investment Properties to Choose From
Based on our previous points, we have come to the conclusion that Tampa real estate is one of the best in the country because it offers property investors with multiple types of investment properties to buy. A Tampa real estate investor can find single-family homes, multi-family homes, commercial as well as other types of investment properties.
In addition, after buying a rental property in Tampa, the real estate investor has the ability to rent it out as a long-term investment property (traditional) or a short-term investment property (Airbnb). The best thing is: both rental strategies will yield a good return on investment!
Increasing Absorption Rate
The absorption rate is the rate at which actively listed properties are selling in a given market. To calculate it, you divide the number of closed sales by active listings. A low absorption rate means investment properties are selling slowly (buyer’s market) while a high rate means they’re selling quickly (seller’s market).
The absorption rate of Tampa real estate has been growing over the past 5 years and, as of February 2018, it is a whopping 33.6%! This is a good sign for property investors thinking of selling their rental properties in Tampa.
Where to Invest in Tampa Real Estate
Based on data analysis from Mashvisor, here’s a list of the best neighborhoods of Tampa real estate in which property investors will find the best investment properties for sale:
- Courier City
- Seminole Heights
- Tampa International Airport Area
- Tampa Heights
- Historic Ybor
- Old Seminole Heights
- South Seminole Heights
- Davis Island
For more information and statics regarding these specific neighborhoods, read this guide: Best Places to Buy Property in Tampa Real Estate Market 2018
To start looking for and analyzing the best investment properties in your neighborhood of choice in Tampa, click here!
Start Your Search for a Tamp Real Estate Investment!
Mashvisor’s platform provides property investors with the best real estate investing tools and data analysis (traditional and predictive) regarding traditional and Airbnb investment properties to help them analyze and find the best investment property. To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
To start your search for an investment in these best places to buy a property in the Tampa real estate market, make use of Mashvisor’s:
- Investment Property Finder: A powerful and heavily customizable search tool that allows property investors to search for rental properties based on specific criteria, such as finding properties of a certain type, in a certain neighborhood, or with a certain Cap Rate.
- Investment Property Calculator: A versatile tool that allows property investors to calculate the different values related to a rental property, including the Cash on Cash Return, Cap Rate, Cash Flow, and Airbnb Occupancy Rate.
- Heat Map Function: The heat map function for the property finder tool allows property investors to find rental properties much faster using visual cues. For example, you can set the heat map to indicate the areas with the highest Cash on Cash Return, and you will immediately be able to see the results.
Related: Mashvisor: A Real Estate Investing Tool for All Your Investment Needs
Sign up for Mashvisor now to get access to our real estate investment tools to help you buy the best investment properties in any city and neighborhood across the US housing market!
Final Words on Tampa Real Estate 2018
To sum up, the rapid population growth, strong local economy, and the tourism industry are just a few of the many factors that make a hot market for real estate investing – all of which can be found in Tampa real estate! Click here to start looking for and analyzing the best investment properties in Tampa!
Don’t forget to check out Mashvisor’s real estate investing tools to find the best investment property and turn 3 months of property search into only 15 minutes!
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
