Market Conditions in Tampa>Question Details

Jiangzhca, Home Buyer in Tampa, FL

Is this area good for investment purpose?

Asked by Jiangzhca, Tampa, FL Mon May 14, 2012

I want to buy a condo at this location as a rental income source. Is it a wise option?

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Answers

7
It really doesn't matter if its condo or a single family home - all costs of ownership can be volatile and may make any investment unattractive. To determine if a investment is correct you need to know what your strategy is. Cash flow, equity? How much are you investing and what type of client is attractive to you in dealing with for a rental. Once you know this then you can tell if a location is right for you to invest in.
1 vote Thank Flag Link Wed May 16, 2012
That is always a good question. Of course if the answer were simple, EVERYONE would be buying those low priced condos.

Now, take a look at the condos profiled in my blog which is linked below.
http://www.trulia.com/blog/AnnetteLawrence/2012/05/dunedin_f…

Clearly, the 'real' opportunity has passed if the current trends continue. Although you won't buy at the bottom of the market, you can still get a great value...well, maybe.

Being a very desired water front condo complex with exceptional quality of life amenities the approximately $500 a month maintenance fee can create a real rental handicap.

Now, even if you were to acquire at a great price and found you could rent with a $400 a month positive cash flow, there still may be a poison pill in play. Such poison pills are in the association documents which may state minimum 12 month leases and must wait one year between leases and must own a year before leasing. Did I mention a $500 a month maintenance fee?

So, if you are looking for a low cost condo that will produce positive cash flow...well, you need to pick up the phone and call a Tampa real estate professional.

The direct response to your questions is 'Absolutely, if you choose wisely."

Best of success to you.
1 vote Thank Flag Link Mon May 14, 2012
It is wise depending on location and low HOA. Also into consideration the reserves, however, investors are buying mostly single family homes. There is more income in single family homes than condos right now.
0 votes Thank Flag Link Mon Jan 28, 2013
The other problem with most condo complexes is lenders are not willing to lend without a substantial downpayment--unless it's one of the few "approved" complexes. So your future resale may have to go to an all cash buyer.

Also don't forget the risk of a "special assessment" with a condo association so make sure to review the financial statements and recent board of directors meeting minutes. Also you need to see if there is a lot of deferred maintenance that could end up costing you via large special assessment.

Good luck!
All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Wed May 16, 2012
The problem with condos is that you don't have control over the condo fees. There are plenty of single family homes that will be more suitable as rentals.
0 votes Thank Flag Link Mon May 14, 2012
You should be able to find good investments most anywhere in Florida. You should first search for a good real estate agent to do the searching for you. The agent will get paid by the seller, making it free to you, the buyer. I am willing to do the work if you are serious about buying. My number is 813-892-8255
0 votes Thank Flag Link Mon May 14, 2012
Jiangzhca,
To be able to help you with that question I would need to know more about the location of the condo
that you are thinking about. Then I can look up current rents and then as always it comes down to
what you have to pay for the condo weather it is a good investment. Give me a call directy if you would like. 813-505-3474
0 votes Thank Flag Link Mon May 14, 2012
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