For many people who invest in real estate, they focus on high-end rentals in upscale neighborhoods. In fact, investing in low-income neighborhood rentals can add up to more cash flow and profits. In Tampa, Florida, at least 25.6 percent of the population is living below the poverty line compared to 20 percent for the entire state. Investing in low-income Tampa Florida apartments is something to look into for real estate investors.
Focus on Tampa Low-Income Neighborhoods
To invest in this kind of real estate, you have to know where to spend. Neighborhoods such as Orient Park, Northview Hills, Beasley and Grant Park are areas to consider. The best thing to do is research online. Also, be sure you hire a real estate person who is familiar with your goals and motives for low-income rental property in Tampa.
Research the Prices
Once you’ve decided what low-income neighborhood to invest in, research the rental prices for low-income Tampa apartments in the area. Are they prices that seem reasonable to you and ones you can work with? Your real estate agent is a useful resource for this step as well.
Research Apartment Sales in the Neighborhood
Now comes the part where you research what apartment buildings are for sale in the area. Are you in a position to purchase one? Do you have an emergency plan for tenants who don’t pay their rent on time or not at all? There is a greater risk of late payments and non-payments with lower-income people. You will be responsible for monies you have not received. You will also be responsible for repairs to the building and all upkeep. Taxes are also a primary consideration.
Look into Government Subsidized Rental Programs in the Neighborhood
To help you with cash flow and rental payments, look into what the government can help you with. What government subsidized rental programs can you take advantage of as an apartment building owner of a low-income Tampa Florida apartment?
What Taxes and Insurance Are Needed for the Property?
As we touched on above, one of your major expenses would be covering the taxes as well as covering the insurance. These are non-negotiable expenses that you’ll need to be able to cover if you plan to buy an apartment building.
Your cost to get a low-income Tampa Florida apartment building will be lower than other kinds of apartments, and therefore, the mortgage will be less. However, you will still have to cover all of your basis to make sure that you can keep the building afloat.