HI everyone,
First of all thank you so much for the commentary everyone has shared! It has truly made the experience a lot easier and I cannot imagine how many extra hours I would have had to gone through researching if not for this forum!
As I mentioned in an earlier thread, I have used the case shiller index very simplistically as a method of narrowing down the areas I wanted to invest. I wanted a middle of the ground city ie not vegas which was too risky and not NY where values had not fallen enough to justify the countercyclical investment I am attempting to make. After narrowing this down to four cities I eventually focussed on Tampa.
This is when it became tough. I figured you could buy a property nearly any city in the states but it was the micro analysis which would play a big part in the success. I have therefore narrowed it down to south tampa due to it being constrained land supply due to surrounded by water on both sides, lots of quality schools in the suburb, very close to the downtown, close but not too close to the airport and close to major arterial roads which provide easy transport.
However, it is now the next bit which I am finding difficult and that is differentiating which aspects/parts of the suburb I want to invest in ie going to the next micro level.
So, I guess my first question is: does anybody know which areas within South Tampa are the most desirable and within the 200k-300k range? ie I would love it if anyone was able to break it down to a smaller area within South Tampa.
I am currently also interviewing a number of property managers at the moment as well and hoping I can choose the right one.
I hope to roll the property into an LLC as opposed to attaining the financing through an LLC however I need to get some legal advice on this but I am not 100% sure who to contact?
Has anyone come across a good solicitor who is able and willing to help foreigners in the US?I would love to hear from you guys with your thoughts and if anyone has any questions feel free to contact me!
Stuart
Hi Stuart,
Hope you got my e-mail response to your e-mail I received last night. You are dead on correct about Tampa so your due diligence has been accurate. What I did not mention in my e-mail was that pricepoints of 200-300k seem high unless you are going high-end condo. At that price, it is highly unlikely your rent would cover your debt service and expenses.There is a massive need for affordable rental properties which is why we keep our focus there, ie..under $100k within 10-15 minutes of Downtown Tampa. These are not "war-zones", just more affordable living considered C-Class assets.
My opinion of course
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeUpdate on South Tampa area:
Our firm purchased a property located at 1821 E. Seward Ave. S in Tampa about 3 weeks ago. We bought for in the mid $50k range but needed about $15k worth of rehab. Zillow Link
Our goal was to achieve a renter for $1,150 to $1,250 per month post-rehab. We just executed a lease with the higher of the two at $1250. After operating expenses, this calculates a 15% Cap Rate at $79,000.
Zillow estimates the value at $65k or so. This is true in its old condition. We purchased from the bank and the home was neglected for over a year. The Tampa area property appraiser values distressed assets as such. It is pretty misleading especially for investors from out of town.. Rehab included full new kitchen, baths, carpets, int/ext paint, and A/C condenser system and Air Handler. This was built in 2005 and I was told that the old homeowner basically took everything out of the home, which is the reason for the higher rehab cost. That said, it met our budget and economic pro forma.
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CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone Me
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