Where Are the Best Places to Buy Investment Property in Tampa?

The Tampa Metropolitan Area, composed of Tampa, St. Petersburg, and Clearwater, is growing at an exponential rate.

Though the area has been known for decades as a scenic vacation and retirement spot, the growing presence of higher-paying professional and business services is notable. 

With the Tampa Metropolitan Area being a hotspot for three professional teams, world-class amusement parks, and gulf coast beaches, the area brings in around 15 million tourists annually. It comes as no surprise that the area’s key employment sectors are leisure and hospitality, construction, professional and business services, and financial services.

However, with the highest growth in private-sector jobs in all of the state, comes the demand for large infrastructure projects in transportation, building, urban design, and real estate. The area will need supporting jobs in all service sectors to sustain an influx of permanent residents, and these people will need housing that is close to what they care about.

But with seemingly unpredicted market fluctuations of the past few years, how can people afford housing to fit their needs?

Coliving is a Great Option for Investment Property Owners in Tampa.

Coliving thrives as an innovative, new model for people looking to relocate, and for real estate investors’ striving portfolios. So, what is coliving?

Under coliving, housing productivity increases as the conversion to multiple “units” within a home foster a bigger market for professionals seeking housing close to their professions and other daily activities. 

When listing your property with Alcove, your investment property will be occupied by professionals who individually pay their share of rent and utilities. This creates more opportunities for them, and with Alcove’s revenue-sharing model, greater returns for your investment. 

Investing in rental real estate can net you a dependable cash flow in the Tampa Metropolitan Area. Rental values are up 30 percent, resulting in high demand for renting and a large tenant supply. Renters are willing to pay top dollar, and cash flow has been higher than in other markets due to high price-to-rent ratios (many hitting beyond the 1% rule).

Because rents in Tampa have stayed relatively high compared to the price of the homes being sold, rental returns have not been suppressed. With 48% of Tampa inhabitants renting rather than buying, these returns will likely continue to flourish. 

But where in the Tampa Metropolitan Area should you be buying to get the best returns for coliving?

Honestly, we know that any of Tampa’s 93 neighborhoods will expect rewarding returns, but more specifically, we’ll share some areas that are great investments for the present and for the time to come. 

Based on our data and research, the following below are the best places to buy investment properties in the Tampa area (in no particular order):

1. South Tampa

• Mostly Residential neighborhood

• The cost of living is lower compared to surrounding areas

• Versatile locations and styles

  • Mid-century architecture, water views, single-family houses

2. Downtown Tampa

• The central business district of Tampa

• Location of many major companies of employment

  • Bank of America, Frontier Communications, PNC Financial Services, and more

• Site of popular tourist attractions

  • The Florida Aquarium, Glazer Children’s Museum, Tampa Museum of art

3. Channel District

• Host to Amelia Area

  • Home to the NHL Tampa Bay Lightning ice hockey team

• Water Street Tampa

  • $3 billion mixed-use development project of the Downtown Waterfront 

• Close to major waterways and cruise ship paths

  • Port of Tampa

These are just a few of the many neighborhoods within Tampa that would have sustainable returns for investment properties. 

If you're curious to see how much you could earn, run your property through our coliving rental estimator and see how much income you could receive in Tampa by listing on Alcove one day.

If you're curious to learn more about why Alcove is a great option for investment property owners, read more here!