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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.
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 10%, 15%, 20% and higher to our investors.
The Perfect Storm
- Property values have dropped significantly, especially in the State of Florida.
- Rents have not been affected by this downturn.
- 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.
- The rental occupancy rate in Tampa Bay is averaged at around 92%
Combine these factors together and we have ourselves a “Perfect Storm” for investing in Tampa Bay cashflow rental properties.
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Why V&V?
At V&V Real Estate Associates & Financial Services, we do 5 important things that concern this type of investor:
- We locate and negotiate the best deals in town through our contacts in the court house and in some private banks
- We finance these deals to our investors up to 80% through some private lenders who we’ve partnered up with
- Our in-house construction crew will get the home rehabbed and ready for tenants if necessary; even getting the property approved for Section-8. We do this work at rates that are typically 30% lower than the average contractor would charge
- We work extra hard to have the property occupied within no later than 90 days
- We provide top-notch property management and maintenance for the time you own your investment
We provide a one-stop-shopping experience for a real estate investor of any background or experience level.
Seasoned Investors – Many experienced investors do not have the time to negotiate these deals, oversee the rehab work, and ultimately deal with the tenants, nor do they want to. We do all that dirty work so they don’t have to.
New Investors – Someone who is new to investing typically moves very carefully to avoid making mistakes that could potentially cost them lots of money in the long run. We take the fear away by holding them by the hand and walking them through the entire process – from “A to Z”.
Private Lenders – Seasoned investors, rookies, or anyone who would like to invest in real estate but does not want to participate in the routine of renting and or tenancy – looking for a more conservative and passive income.
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