Home Buying in Tampa>Question Details

tmurphyj, Home Buyer in Tampa, FL

Considering buying my first home in Tampa or St Pete and renting it. Does this make sense?

Asked by tmurphyj, Tampa, FL Fri Jun 21, 2013

I am moving from Tampa to Spain in October for one year to to teach English. Because interest rates and home prices will continue to climb and bc right now I have the income history to qualify for a loan and will not after a year in Spain, I am considering purchasing a property and renting it while I am gone. However, I do not particularly want to make my life in Tampa/St Pete when I get back. I am looking for a property between $100-120k. The mortgage with insurance and taxes would be $700-$800. I should be able to rent the property for slightly more than that. My idea is to just keep the property as a rental if I do not move back to Tampa. Does it make sense to pursue this?

Help the community by answering this question:

Answers

11
Thanks for the replies. My intention is to obtain a conventional mortgage, live in the home until October, rent it while I'm gone and then return to live in the house. Is this ok to do with a conventional mortgage. Moreover, is this a good idea financially?
1 vote Thank Flag Link Sat Jun 22, 2013
Along with the very astute answer that Alma gave below, please consider using a property manager/realtor to manage your property while you are away. Property investment is a local sport. Having a business professional responsible for your investment will not guarantee great tenants but will help follow procedures when rents are not paid, or damage occurs to the property. Even with the worlds greatest tenants appliances break, A/C's wear out and storm damage happens. I am not saying do not invest in a property but have a plan in place to minimize the the problems.
1 vote Thank Flag Link Sat Jun 22, 2013
I applaud your intentions but would err on the side of caution.

As Lynn has stated. Buy where you live. Yes, Tampa is a strong rental market, whether seasonal or long term, but being a landlord is not always rosy. And you're not sure you want to live here when you return. Investment in real estate is not as liquid as other investments. Last, this sounds like it would be your first foray into being a landlord.

Don't get me wrong. I think real estate is the best investment out there, and safer than our stock market when we have such a precarious economy running up billions in debt every minute. But there's a downside to real estate also. If you get a tenant that destroys the property costing you thousands of dollars. If you have any emotional connection (since you're living there first) and it's destroyed when you return. As a new landlord you need to consider vacancy rates in your economic projection as well. You need to select a diligent property manager (and yes, make it a professional, licensed one)

You have 6 months to learn how to do this, and it can be done. But plan for the worst in order to get your positive results. Selecting the right tenant is key, and MUST be intentional. Don't leave it to luck.
0 votes Thank Flag Link Fri Apr 17, 2015
Right now is a great time to buy and get into a low interest rates. Rates will continue to rise over the next few years so making an appropriate investment now is key. Also if you will not be moving back possibly finding a property management company would be to your benefit. I know a few managements companies and can refer you contact information. Also the question is when will you be moving in October and do you have a proprty chosen? How much are you also interested in putting down since this will be an investment property? Personally I am a Senior Loan Officer at Residential Finance. If you would like for me to to attain a pre-approval letter so that you may begin to shop please let me know. I can have one for you within 24 hours.

Warm Regards,
Stephanie Adams
Senior Loan Officer

Residential Finance
813.316.2172 Direct
800.930.7334 Ext 1477
877.813.7519 Fax
stephanie.adams@residentialfinance.com
Individual NMLS ID: 1001484
0 votes Thank Flag Link Tue Sep 17, 2013
I am certainly in favor of purchasing now before interest rates go too high to make a profit with a loan. I myself own several rental properties and In my opinion, it would be a good investment. Good luck in Spain!

Margaret Hassani
Broker, Lightning Realty
Innovation and Experience
(813) 766-1501
Fax (813) 443-0118
zzmarg@gmail.com
http://www.LightningRealtyFL.com
0 votes Thank Flag Link Sun Sep 15, 2013
Jennifer, Agent, Tampa, FL

Prices are on the rise. In my opinion rentals are a good source of income as long as it covers the expenses and you can clear positive cash flow. Later on if you decide Tampa is not your home you can sell the property. I am a licensed Community Association Manager (Property Manager) and a Realtor. Should you decide to move forward I can assist you with both the purchase and the management of the property. Call me to discuss. 813-447-5495.
0 votes Thank Flag Link Sun Jun 30, 2013
Hi Again,

Ask Gina Harris with Iberia Bank about the question about getting a conventional mortgage and then converting it to an investment property. Here's her info, she's VERY experienced and knows what she's talking about so you can be assured you'll get the right answers to your mortgage questions:

Gina Harris
NMLS # 419423
Mortgage Specialist

3550 Buschwood Park Dr., Suite 295
Tampa, FL 33618

Office: 813-933-6611 Ext 204
Fax: 800-868-0337
Cell: 813-244-5685
Email: gina.harris@iberiabankmortgage.com

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
http://www.SoldOnTampa.com
0 votes Thank Flag Link Tue Jun 25, 2013
tmurphyj, No. If you are seeking an investment there are many options.

From your comments, the significant message you have indicated is "however, I do not particular want to make my life in Tampa/St.Pete when I get back."

Rule #1, buy a property where you want to live and enjoy the community.

In one year you might have completely different thoughts, best to check with your CPA regarding tax implications of owning a rental and converting it to a homesteaded property. Research the damage and no pays impact if you are in Europe and the tenants are not cooperative. You will be paying for a mortgage without the rental income. Then pay for repairing damages to the property upon your return.

The tenants could have repairs completed to the property and not pay the vendors, then mechanic liens are placed on the property and you are responsible.

Your theory has lots and lots of holes when applied to the field.

Best of luck
Lynn Brock
Brock Realty Inc.
941.313.1234
http://www.brockrealty-inc.com
0 votes Thank Flag Link Tue Jun 25, 2013
Hello, I live in Sarasota, FL and help thousands advertise their seasonal rentals. I believe you can purchase a home and rent it out during season with room to spare on your mortgage. I recommend speaking with one of the real estate agents in this forum to find the right place. Be sure the place has amenities that snowbirds are seeking and that the price is right. If you do that you will make out well. Once you have acquired the property you should check out seasonal rentals by owner
Websites to best learn how to market and manage your seasonal rental property.
0 votes Thank Flag Link Sat Jun 22, 2013
I have seen a few properties for sale that already have solid tenants in place for year long leases. These would be relatively easy for an investor to pick up. I have a mortgage broker that can see what type of loan you would qualify for if you are interested let me know!
0 votes Thank Flag Link Sat Jun 22, 2013
Can you qualify for an investment mortgage? If you can only qualify for an FHA or primary residence mortgage then it may be considered mortgage fraud if you do not intend to occupy as your primary residence. I'm not a mortgage lender but you may want to verify with an experienced lender.
0 votes Thank Flag Link Sat Jun 22, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer