Investment Real Estate in Tampa- Have you ever considered investing in real estate instead of the financial markets? Right NOW is the perfect time to get in the game. Let me explain.
Tampa, Florida was one of the hardest hit cities in the country in terms of foreclosures during the housing market collapse. The high numbers of distressed properties have put downward pressure on home prices. While the depreciating values are a nightmare for homeowners, they represent an opportunity for potential investors to scoop up these properties at discounted prices. In addition, we are now seeing a decrease in inventory which indicates a stabilizing market. There is an opportunity here in Tampa right now to maximize the timing of your investment by striking while the iron is hot.
Now here is the best part. All the folks who have had their home foreclosed on still need to live somewhere....right? Unable to secure financing for another house, these ex-homeowners are flooding the rental market.These are people who still have jobs and therefor the ability to make monthly rent payments. As a result of these circumstances, rental demand is growing which means an income/rental property can command higher rents. Vacancy rates are dropping so there is less downtime. Higher rents plus less downtime equals greater cash flow.
The final piece of the puzzle is leverage. When you mortgage an investment property you are earning a return based on the full value of the property, yet you are only investing 25-30% for a down payment. Most other investment vehicles require you to invest 100% of the value out of your own pocket. When you finance investment real estate in Tampa by getting a mortgage, you increase your rate of return.
Now let's put it all together. Housing prices in Tampa, FL are at or near their lows so the timing and prices are optimal. High rental demand means you can expect to rent your property quickly and easily, to qualified tenants, for higher prices. High rental income in excess of monthly expenses (mortgage, taxes, maintenance etc.) means positive cash flow. At the same time you earn an income from positive cash flow, you are building equity by paying down your mortgage. Finally, when the home values begin to rise, you increase your return further through appreciation. As you can see, NOW is the time to buy investment real estate in Tampa.