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The Best Places to Buy a Vacation Home in Tampa

by Victoria DaibesAug 18, 2018January 30, 2024

Diversifying your real estate portfolio for great returns on investment starts with capitalizing in the right location.

With this said, it needs no questioning that Florida is considered one of the best places to buy a vacation home in the US for your real estate investing business. If you are considering buying a vacation home and owning an Airbnb property this year, investing in Tampa is the way to go.

With the focus on vacation home rentals, this blog will give you all the good reasons to invest in Tampa real estate and list the best neighborhoods for vacation home rentals.

5 Reasons to Invest in a Vacation Home

Here are five reasons why investing in a vacation home is a good idea:

1. A Good Location Reaps High Rental Income

This one needs a little explaining. In real estate, location is everything! Keep in mind, however, that the right location to buy a rental property depends on your real estate business strategy. Traditional real estate markets must be in safe residential areas to attract the right tenants. An Airbnb rental strategy, on the other hand, must be situated in a big touristic city or/and in the hustle and bustle of the city.

To cut your time and expenses in half, choose Mashvisor to find the best places to buy a vacation home and hone down on the right analytical tools and research metrics for big financial wins.

2. Short Term Rentals Are on the Rise

Airbnb has opened up a big business opportunity for real estate investors to capitalize on vacation homes and attract Airbnb guests at any time and from anywhere. Today, the Airbnb business in Tampa is at an all-time high and is expected to grow even more in the upcoming years. For real estate investors looking to make big financial wins, this makes Tampa real estate market among the best places to buy a vacation home.

3. You Can Earn More Money With a Short Term Rental

Unlike traditional real estate, an Airbnb rental strategy allows Airbnb hosts to set a dynamic pricing strategy to maximize their revenue and rental income throughout the year. This is a profitable business with no profit quota! A savvy investor knows the importance of offering high-quality service to his/her guests and cultivating positive reviews.

4. Tax Perks

The tax advantages investors receive from owning rental properties make real estate a very lucrative business, to say the least. For example, as a real estate investor, you are eligible to write off your mortgage interest payments and rental expenses from owning rental properties!

5. You Will Have Your Own Vacation Home to Enjoy!

Vacation home rentals are dual purpose because real estate investors can rent them out to make money, or/and use them for their family vacations for zero cost. This way, you know where to go for your vacation and end up saving money. Win-win!

3 Reasons to Invest in Tampa Real Estate

Below are three reasons why you should invest in Tampa real estate:

1. Positive Economic Indicators

A growing economy makes way for the best places to buy a vacation home and real estate investments in general. Look for positive economic indicators such as GDP, unemployment rate, population growth, rise or decline of housing inventory, crime rate, etc.

According to the Tampa Bay Business Journal, the economy of Tampa Bay is expanding; employment since 2014 has risen 3.6% while GDP has risen 1.4%.

2. A Booming Tourism Destination

It goes without saying that Tampa is home to one of the best tourist markets in the US and, in turn, this makes it among the best places to buy a vacation home and start an Airbnb business. In 2017, Airbnb in Hillsborough County (which includes Airbnb Tampa) had 78,700 Airbnb guests, making up to $10.4 million!

3. Affordable Real Estate Investments

Housing prices in Tampa are reasonable for real estate investors looking for a high ROI in the best places to buy a vacation home. Tampa real estate market is booming with housing inventory and affordable real estate investments.

The price of real estate properties in the city falls in the range between $90,000 – $200,000. The median housing price is approximately $223,250, but that does not mean you won’t be able to find a cheaper alternative in the area!

If you are looking to find affordable housing in the Tampa real estate market, use Mashvisor’s property finder tool to find profitable traditional and Airbnb properties in a matter of minutes. Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!

The Best Places to Buy a Vacation Home

Here is a list of the best places to buy a vacation home in Tampa real estate based on Mashvisor analytics and our investment property calculator.

1. North Hyde Park

Median House Price: $647,117
Monthly Airbnb Rental Income: $2,646
Monthly Traditional Rental Income: $2,141
Airbnb Cash on Cash Return: 1.2%
Traditional Cash on Cash Return: 0.61%
Airbnb Cap Rate: 1.2%
Traditional Cap Rate: 0.61%
Airbnb Occupancy Rate: 62.2%

3. Downtown

Median House Price: $412,457
Monthly Airbnb Rental Income: $2,213
Monthly Traditional Rental Income: $2,396
Airbnb Cash on Cash Return: 1.04%
Traditional Cash on Cash Return: 2.66%
Airbnb Cap Rate: 1.04%
Traditional Cap Rate: 2.66%
Airbnb Occupancy Rate: 54.66%

4. Courier City

Median House Price: $411,795
Monthly Airbnb Rental Income: $2,424
Monthly Traditional Rental Income: $1,988
Airbnb Cash on Cash Return: 2.24%
Traditional Cash on Cash Return: 1.62%
Airbnb Cap Rate: 2.24%
Traditional Cap Rate: 1.62%
Airbnb Occupancy Rate: 64.53%

5. Parkland Estates

Median House Price: $814,800
Monthly Airbnb Rental Income: $2,776
Monthly Traditional Rental Income: $2,239
Airbnb Cash on Cash Return: 0.94%
Traditional Cash on Cash Return: 0.33%
Airbnb Cap Rate: 0.94%
Traditional Cap Rate: 0.33%
Airbnb Occupancy Rate: 64.53%

6. Historic Ybor

Median House Price: $189,650
Monthly Airbnb Rental Income: $1,890
Monthly Traditional Rental Income: $1,270
Airbnb Cash on Cash Return: %4.47
Traditional Cash on Cash Return: %2.65
Airbnb Cap Rate: %4.47
Traditional Cap Rate: %2.65
Airbnb Occupancy Rate: %55.76

7. West Riverfront

Median House Price: $410,000
Monthly Airbnb Rental Income: $1,290
Monthly Traditional Rental Income: $1,550
Airbnb Cash on Cash Return: 1.83%
Traditional Cash on Cash Return: 1.52%
Airbnb Cap Rate: 1.83%
Traditional Cap Rate: 1.52%
Airbnb Occupancy Rate: 60.16%

8. Tampa-Bayshore Gardens

Median House Price: $390,372
Monthly Airbnb Rental Income: $2,624
Monthly Traditional Rental Income: $1,678
Airbnb Cash on Cash Return: 2.13%
Traditional Cash on Cash Return: 0.75%
Airbnb Cap Rate: 2.13%
Traditional Cap Rate: 0.75%
Airbnb Occupancy Rate: 62.11%

9. Harbour Island

Median House Price: $925,876
Monthly Airbnb Rental Income: $3,773
Monthly Traditional Rental Income: $2,223
Airbnb Cash on Cash Return: 1.64%
Traditional Cash on Cash Return: 0.39%
Airbnb Cap Rate: 1.64%
Traditional Cap Rate: 0.39%
Airbnb Occupancy Rate: 57.54%

10. South Seminole Heights

Median House Price: $318,220
Monthly Airbnb Rental Income: $2,375
Monthly Traditional Rental Income: $1,388
Airbnb Cash on Cash Return: 3.58%
Traditional Cash on Cash Return: 1.61%
Airbnb Cap Rate: 3.58%
Traditional Cap Rate: 1.61%
Airbnb Occupancy Rate: 49.82%

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Conclusion

Starting an Airbnb vacation home business boils down to finding the best places to buy a vacation home. The right location reaps real estate investors a high rental income and high occupancy rates throughout the year. Without the right location, you won’t be profiting from your Airbnb rental property and might even be forced to sell it for a discount.

A favorable real estate market for a short term rental strategy is in a growing economy, a booming city, and a prime neighborhood – all of which can be found in Tampa!

To start looking for and analyzing the best places to buy a vacation home in your city and neighborhood of choice, click here.

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