Tampa agents say property flippers helped send the bay area real estate market into a tailspin in the past few years, by flooding the market with too much inventory that is now overpriced.
Veteran agent, Debbie Zito says that the people who got into trouble did not do their homework. "They heard that other people were doing very well flipping, they got in too late," she says.
Now those are being forced to sell at a loss. But the down-market is creating new opportunities for investors on the sidelines who have money. Zito says the flipping game has changed. One strategy is to buy low and hold in areas that are on the verge of exploding. One area is between Manhattan and Westshore near the Westshore Yacht Club, and a new development called Newport. "It's going to be waterfront communities…in a few years you won't even be able to recognize it," Zito explains, "It's going to be absolutely beautiful."
Homes and high-rise condos will be in the million to multi-million dollar range. But Zito says investors should look in the areas right next to them. "We are a block from Westshore. There is a lot going on in that area, and the land value of these properties alone for future development is going to be very, very sought after," Zito says.
He says another area to look at is north of Kennedy to Boy Scout Blvd, "It's close to the airport, it's close to the city, it's close to the malls, and it's going to be a very good area." Finally, one area that is good in up and down markets is south Tampa. Here you can find deals from panicked investors.
Mike Gerard works for an investment group that is targeting deals in South Tampa. "This property right here is probably in one of the nicest areas in South Tampa," Gerard says, "This particular lot is a 50 by a 101 foot lot that we were able to pick up for $215,000."
Gerard's business partner, Steve Austin says it's a steal when you see the location. "The property is in the heart of the South Tampa area," says Austin. But, you have to do your homework, or you can lose big time. "In South Tampa one block over and you can lose $50,000-100,000 on a particular property, so you really have to know what you are doing, because it's a very tricky market," says Gerard.
