Where to find Florida homes at a crazy affordable price

This week, we chatted with Tyler Howell of Whole Property Management, which manages rental properties in Tampa, FL.

Average home price: $369,079 (down 3.9% YoY)
Homes that sell over list price: 14.0%
Homes that sell under list price: 69.3%
Average rent: $1,968/month

The pros: “Tampa hits a rare middle ground: It gives people a lot of the Florida lifestyle without the same cost, congestion, and intensity as South Florida,” Howell explains. Even at the height of the pandemic real estate craze in 2021, Howell managed to buy a home here for just $187,000, poured $110k into a full-gut reno, and currently rents it out for about $2,000 per month.

Today, Tampa purchase prices are down, but renter demand remains strong. As a result, “Cash buyers looking for rentals are in a great spot,” Howell says. “They’ll reap the rewards of lower prices due to elevated interest rates without actually paying any interest.”

The cons: Covid sparked a wave of apartment construction, flooding the market. “Absolutely do not purchase a one- or two-bed rental unit unless you have the ability to add a third bedroom,” Howell says. That means most condos should be avoided; single-family homes are a better bet.

His advice: “Look for a three- or four-bedroom single-family home or townhome priced around 70–90% of the median,” Howell says. “Must-haves in this market are central AC (not window units or mini splits), at least two bathrooms, and in-unit laundry. With rents currently depressed by a glut of inventory, single-family home rents will almost certainly rise as the Invisible Hand sorts the market out over the next two to three years.”

Got a home or housing market you want to highlight in The Playbook? Tell us more about it here, and we’ll consider featuring it in an upcoming issue.