The largest free Internet database about cost of living, Numbeo.com, clearly illustrated that Tampa Bay was ranked the number one city in 2010 for the lowest price to rent ratio and the highest gross rental yield, worldwide – and has remained one of the top five cities in these same categories for 2011. We can be sure to expect more of the same throughout 2012 and 2013.
The Price to Rent Ratio is the average cost of ownership divided by the received rent income for “buy, hold and rent” cashflow Real Estate Investors.
The Gross Rental Yield is the total yearly gross rent divided by the house price, expressed in percentages.
What this means is that Tampa Bay is one of the best places to invest in cashflow rental properties in the world right now. This is the reason why we are able to deliver capitalization rates of over 10% to our investors.
Today’s Window of Opportunity
Property values have dropped significantly, especially in the State of Florida.
Rents have not been affected by this downturn.
The rental occupancy rate in Tampa Bay is averaged at around 92%
Florida is one of the states with the largest number of foreclosures in the country.
As a result of the “sub-prime mortgage meltdown” banks are becoming more stringent with lending practices making it more difficult, even for people with good credit, to get a home loan.
More people with foreclosures on record means even less people qualifying for loans, which results in more people looking for homes to rent.
Combine these factors together and we have ourselves a “Perfect Storm” for investing in Tampa Bay cashflow rental properties.