Multifamily investment properties are hot in Tampa Bay, as the Tampa metro market continues to be recognized as one of the best overall real estate markets in the U.S., and one of the best markets to invest in real estate.
As a matter of fact, our company recently purchased two multifamily properties. One property is in Tampa, Florida and has 24 units, and another is in Lakeland, Florida and has 8 units.
Multifamily Investors are Making Money
The best part about multifamily investments in Tampa Bay is that investors are making money.
Take the 84-unit property at 1175 Pinellas Point Drive in St. Petersburg, Florida, as reported by the Business Observer.
- Chicago investment firm DRW purchased the property two years ago from a seller who had bought it just 17 months earlier. By selling the property, the seller doubled his money, making about $11 million.
- Then in May of this year, two years after acquiring the property, and after making improvements, DRW made a hefty profit selling it for $37.46 million.
Some of the reasons experienced investors are successful with multifamily investment properties are:
- Multifamily properties are easier to finance.
- Investors can quickly grow their portfolio with multifamily properties.
- Property management is easier with a multifamily property, compared to single-family homes spread throughout a metro.
- There are more options for forced appreciation.
- Multifamily properties can generate more cash flow.
Here is a video where I show the 24-unit property we recently purchased in Tampa, and tell you about our investment.
Multifamily Investors are Flocking to Tampa
It isn’t just the sunshine that is attracting investors to Tampa Bay, although that certainly doesn’t hurt. Investors are attracted to the Tampa metro from all over the U.S., and the world at large, for the yields they are realizing on investment properties.
These sentiments are expressed by Charles Gower in the Business Observer article.
- “We looked all over the U.S. for (multifamily) projects to acquire, and Tampa was the only coastal city we found where prices had not already exploded.”
- “We’ve been in the multifamily business for more than 30 years, and we see a lot of upside in Florida. There’s still a lot of room. Looking at it from the outside in, so to speak, it’s amazing.”
Multifamily Properties Better Suited for Experienced Investors
Multifamily investment properties can have significant advantages over single-family properties. But, if an investor is not experienced, these advantages often become disadvantages.
We recommend that new investors start by buying single-family homes, which will give them an opportunity to learn the investing business by buying, rehabbing, leasing, managing, and even flipping properties. Their risks are lower with these small properties, compared to large multifamily properties.
Then, as an investor gains experience, we suggest buying small multifamily properties. After gaining experience with these properties, investors can move up to even larger multifamily properties.
In this video, Rafi and I compare multifamily and single-family properties, and share lessons we have learned while investing in real estate.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay. We serve local and international clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.