Dan Maciejewski Coastal Properties Group International
States: Florida
Counties: Pinellas and Hillsborough
Cities and Towns: Tampa, Temple Terrace, Hillsborough County, Belleair, Belleair Beach, Belleair Shore, Clearwater, Clearwater Beach, Dunedin, Gulfport, Indian Rocks Beach, Indian Shores, Kenneth City, Largo, Madeira Beach, Redington Beach, Redington Shores, Oldsmar, Pinellas Park, Safety Harbor, St. Pete Beach, St. Petersburg, Seminole, South Pasedena, Pasedena, Tarpon Springs, Treasure Island, Pinellas County.
Licensed Since: 2016 | FL License # SL3364820
About Dan Maciejewski
Dan is a Second-Home and Resort Property Specialist. He is also a Certified Luxury Home Marketing Specialist. These are skills that match perfectly with the selection of vacation rental properties.
Housing prices are outpacing rents. But Short-Term Rentals have been a booming business for investors lately. I’ve helped dozens of investors realize amazing returns with short term rental, or vacation rental purchases. Long term house and apartment purchases are falling to well below 4% cap rates. But you are still able to get a 9% cap rate with short term rental purchases!
Pinellas County has 24 incorporated municipalities, all with different regulations. Navigating a vacation rental purchase can be tricky. Especially if you are buying from out of state. The good news is that we have systems that allow our investors to buy again and again. All while while feeling completely secure.
Market Overview
People have been coming to Florida in droves over the past few years. With state closures, people have also been visiting that have never visited before. The Tampa Bay Area is an amazing area with many reasons to invest. From the colleges, employers, and history of Tampa to the top-rated beaches of Pinellas, there is so much long-term, seasonal, and short-term housing demand that makes this an appealing place to invest your time and money.
Pinellas County is the 6th most populous County in the State with just under a million residents. It also has a consistent growth rate of around 1%. And while the median income is relatively flat at $46,000, the housing prices continue to rise (around 9% YOY in 12/19) averaged across all price points, meaning that there is an ever-growing need for rentals.
Hillsborough County is the 4th most populous county in the state with 1.3 million residents. It has a steady population growth of around 2%. The median income is growing (around $58,000), partly due to new jobs. The housing appreciation has been a more modest 3% this year, below the income growth. There is still a huge demand for rentals, and in both Pinellas and Hillsborough, the vacancy rates for long-term rentals are low for the state and country.
There is also a demand for affordable housing, as the newer builds and rentals have been focused on the higher end to luxury market. Some studies have found that by 2040 the city of St. Pete must build 2,500 new affordable units to house low-income residents. Pinellas County also has 16 identified Opportunity Zones, allowing for an investor to make some tax savings while improving communities.
Median rents vary by neighborhood – more so than many other areas of the country. The Tampa Bay area, and especially Pinellas County are far more block by block than zip code by zip code. This gives investors many price points and tenant bases to choose from.
Across the region, there are many mom and pop landlords that haven’t kept up their properties and have subsequently fallen below market rents. Giving a savvy investor an opportunity to force appreciation and raise rents with a little capital investment in almost any single to small multifamily.
Investment Price Points
You can be able to cash flow on purchases at every price point. From $300,000 duplexes to 144-unit portfolios. From 1 bed condo/hotels to million-dollar 8-bed STRs. In general, assuming 25% down and a little forced appreciation, there are plenty of opportunities awaiting a smart and motivated investor.
Free Report: Demographic and Housing Data on the Tampa Bay Area Market
Would you like free demographic and housing data on the Tampa Bay Area market? The report includes information on schools, income, employment, crime, average sale prices, fair market rents and more. You can get reports on the whole market or zero in on a specific zip code.
This report has all the info you need to help you decide if the Tamps Bay Area market is right for you! Click here to get your free report.
