And Why New Construction is the Way to Go

The Florida real estate market is one of the most profitable in the U.S., despite the high prices and demand for properties. Several Florida cities – including Miami, Tampa, Orlando, and Sarasota – are listed as some of the best cities for real estate investing in Florida.

When it comes to the Sunshine State’s housing market, median home prices and inventory continues to grow. The Florida Realtors’ October 2022 update shows that single-family median home prices are up 12% YOY.

Tampa has become a magnet for real estate investors drawn to the city’s booming market. The city has consistently ranked as one of the top real estate markets in the country over the past few years, and investors are taking every opportunity to buy up property in the Tampa area.

With so many people moving to Florida and Tampa Bay, there are a lot of homebuyers coming from more expensive states like New York and California. Market analysis shows that Tampa consistently ranks as one of the most popular and profitable cities for real estate investors.

While rental property investments have created opportunities for investors, the city’s new construction market has also created plenty of investment opportunities. Nearly 54% of Florida’s new home construction activity originated from Tampa and the southwest region of the state in August 2022.

There are a number of construction projects going on in Tampa, creating a great opportunity to scale through new construction financing. Working with a lender like Lima One allows investors to obtain construction loans for investment properties to expand their portfolio.

Why Invest in Tampa?

Tampa is the fastest-growing city in the metropolitan area, posting a growth rate of 27% from 2010 to 2020. By 2045, Tampa’s population is projected to be nearly 498,000, compared to the current 385,000.

Economic recovery and job growth in Tampa is stronger than the national average, with unemployment down to just 2.5%. A booming population and growing job market fuel demand for housing – creating a lot of opportunity for real estate investors.

Overall, Tampa’s real estate market is strong, but which neighborhoods are the ones to watch? Here are six neighborhoods in Tampa investors should consider for investment properties:

Getting the Best Construction Loans in Florida

The Tampa housing market remains one of the hottest markets in the U.S. Tampa’s investment activity has increased with more investors purchasing properties now than before 2020. Investors are buying in Tampa for one reason – it’s profitable.

Real estate investors in Tampa benefit from an average cash on cash return of 3.19% – with the possibility of making as much as 5.41%. 2022 has been a great year for Tampa real estate investing, and 2023 is projected to be just as promising.

Tampa has no shortage of opportunities for real estate investors and partnering with the right lender increases your ability to maximize profits while scaling your portfolio. As a lender built for builders, Lima One Capital can help you close more deals faster.

We offer the best construction loans in Florida and bridge loan financing for investors focusing on single-family residential, short-term rental properties, and multifamily rentals. As the premier lender for real estate investors, our goal is to help investors scale their business and close deals quickly.

Our clients have different investment strategies, so we have designed our loan options to allow us to cater to their individualized needs. Contact us today to discuss your next deal, or if you have a deal in hand, accelerate the process by applying now.