10.1% Cap Rate Airbnb Investment Opportunity in Tampa, FL

Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

Welcome to 8425 Flagstone Drive, Tampa, FL! This 6-bedroom, 4-bathroom home is an investor's dream with a listing price of $1,199,000. Located in the desirable neighborhood of Bay Crest Park Unit 17, this property offers a waterfront pool and is only a short boat ride away from popular restaurants and shopping areas like Bahama Breeze, Hula Bay, Salt Shack, Safety Harbor, and the new St. Pete Pier. The home is close to the Veteran's Expressway, I-275, International Plaza Shopping Mall, Westshore Business District, and Tampa International Airport.

This home is perfect for vacation rental investment and is projected to have a 10-year return of 32.2% per year. The property has an estimated monthly revenue of $18,000, with a Year 1 Cash-on-Cash return of 20.9%. The estimated furnishing budget is $40,270, and there is a $7,500 renovation cost estimate to repaint some of the interior and make some additional repairs.

The property features a vinyl fence, irrigation system, and French doors, as well as amenities like a dock and lift. There is a waterfront view of the canal and the property is not part of an HOA. However, it is located in an AE flood zone and will require flood insurance.

The Airbnb Investment Financials

How much does the home cost?

$1,199,000  

How much will it earn on Airbnb?

$18,000 per month

How much will it cost to furnish it?

$40,270

How much will it cost to renovate?

$7,500. This amount covers interior repainting and some additional repairs to improve the appearance of the house and make it rent-ready. 

How much cash can you take home in the first year?

The estimated net operating income for the property is $125,485 in the first year.

What is the cap rate for this property?

The estimated cap rate is 10.1%.

All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Tampa Short-Term Rental Regulations

What are the short-term rental laws and regulations in Tampa, Florida?

Short-term renting is largely legal in Tampa Bay, as it is in much of the State of Florida. The State of Florida banned local governments from passing laws that prohibit or restrict the use, classification or occupancy of short-term rentals in 2011, with ordinances on the books before 2011 grandfathered in.

Hosts in Florida are required to acquire a vacation rental license from the Department of Business and Professional Regulation (DBPR). Hillsborough County allows short-term rentals (7 nights or less) in some residential and commercial zones, and a general business license is required from the state of Florida.

Hillsborough County, the county Tampa is located in, does not have any official short-term rental laws set in stone as of yet. However, the City Commission started discussing an ordinance in early March 2019, which proposes regulations such as maximum occupancy limits, parking requirements, and minimum living and safety standards.

Is there a moratorium in short-term rentals in Tampa, Florida?

There is no information suggesting that there is a moratorium on short-term rentals in Tampa, Florida.

Why Airbnb Guests Stay In Tampa, Florida

‍Where is Tampa, Florida?

Tampa is a city located on the west coast of Florida, in the southeastern United States. It is the largest city in the Tampa Bay Area, which includes St. Petersburg and Clearwater, and is situated on the Gulf of Mexico.

What is there to do in Tampa, Florida?

• Busch Gardens Tampa Bay: This theme park is home to roller coasters, animal exhibits, and live entertainment.
• The Florida Aquarium: This aquarium features over 20,000 aquatic animals and interactive exhibits.
• Ybor City: This historic district is known for its lively nightlife, Cuban cuisine, and cigar shops.
• Tampa Riverwalk: This scenic walkway along the Hillsborough River is a great place to take a stroll and enjoy the views.
• Tampa Bay History Center: This museum showcases the history of Tampa Bay and features interactive exhibits.
• Lowry Park Zoo: This zoo is home to over 1,000 animals and features rides and interactive exhibits.
• The Tampa Museum of Art: This museum features contemporary and classical art exhibits.
• Big Cat Rescue: This sanctuary is home to over 80 rescued big cats, including lions, tigers, and leopards.
• Curtis Hixon Waterfront Park: This park is a great place to relax and enjoy the views of the Hillsborough River.
• The Straz Center for the Performing Arts: This performing arts center hosts a variety of shows, including Broadway musicals, concerts, and plays.

What kinds of people travel to Tampa, Florida?

• Beachgoers: Tampa is located on the Gulf of Mexico and has many beautiful beaches, such as Clearwater Beach and St. Pete Beach, which attract tourists seeking a relaxing beach vacation.
• Sports fans: Tampa is home to several professional sports teams, including the Tampa Bay Buccaneers (football), the Tampa Bay Rays (baseball), and the Tampa Bay Lightning (hockey). Sports fans may travel to Tampa to catch a game.
• Families: With attractions such as Busch Gardens Tampa Bay, the Florida Aquarium, and the Lowry Park Zoo, Tampa is a popular destination for families with children.
• History and culture enthusiasts: Tampa has a rich history and a vibrant arts and culture scene, with museums such as the Tampa Bay History Center and the Tampa Museum of Art.
• Business travelers: Tampa is home to several major companies, such as Raymond James Financial and Tech Data Corporation, which may attract business travelers to the city.
• Convention attendees: Tampa has several large convention centers, such as the Tampa Convention Center and the Amalie Arena, which host conventions and conferences throughout the year.

When are the busiest and slowest seasons for tourism in Tampa, Florida?

The busiest season for tourism in Tampa, Florida is generally from January to April, which coincides with the winter months when people from colder climates travel to Florida to escape the cold weather. The summer months from June to August are typically the slowest season for tourism in Tampa due to the hot and humid weather. However, there are still visitors during this season who come to enjoy the beaches and outdoor activities. The fall months from September to November are considered to be shoulder season, with moderate tourism activity, while the holiday season from late November to December also sees an increase in visitors.

How far is Tampa, Florida from the nearest airport?

Tampa, Florida has its own international airport, the Tampa International Airport (TPA), which is located just 6 miles west of downtown Tampa. The distance from other airports may vary depending on the location, but some nearby airports include:

• St. Pete-Clearwater International Airport (PIE): approximately 17 miles west of Tampa
• Sarasota-Bradenton International Airport (SRQ): approximately 50 miles south of Tampa
• Orlando International Airport (MCO): approximately 85 miles northeast of Tampa

Are there any major events in Tampa, Florida?

• Gasparilla Pirate Festival: This is a massive annual event that takes place in January or February and features a pirate-themed parade, street festival, and other related activities.
• Florida State Fair: This is one of the largest state fairs in the United States, typically held in February or March, and features carnival rides, live music, food vendors, and agricultural exhibits.
• Tampa Bay Margarita Festival: This festival takes place in May and features a wide variety of margaritas, live music, and food vendors.
• Tampa Bay Comic Con: This is a popular comic book and pop culture convention held in August that features celebrity guests, cosplay contests, and merchandise vendors.
• Oktoberfest Tampa: This event takes place in October and is a celebration of German culture, featuring traditional music, food, and beer.
• Outback Bowl: This is an annual college football bowl game held in Tampa on New Year's Day, featuring teams from the Big Ten and SEC conferences.
• Lightning Made Hockey Festival: This is a family-friendly event that takes place in August and features hockey clinics, games, and other activities.
• Tampa Bay Black Heritage Festival: This event takes place in January and celebrates African American culture with music, food, and educational exhibits.
• Suncoast Credit Union Gasparilla International Film Festival: This film festival takes place in March and features screenings of independent and international films.
• Riverfest: This event takes place in May and features live music, food vendors, and a variety of outdoor activities along the Tampa Riverwalk.

What Airbnb amenities do guests expect and pay a premium for in Tampa, Florida?

• Location: Guests often look for Airbnb rentals that are close to the major attractions and amenities in Tampa, such as the beach, theme parks, and restaurants.
• High-speed internet: Many guests expect fast and reliable Wi-Fi to stay connected during their stay.
• Air conditioning: With Tampa's hot and humid climate, guests expect comfortable air conditioning to keep them cool and comfortable.
• Kitchen facilities: Guests often prefer Airbnb rentals with a well-equipped kitchen so that they can prepare their meals, saving money on eating out.
• Free parking: Guests who have rented a car often expect free and convenient parking near their rental.
• Washer/dryer: Guests appreciate the convenience of being able to do their laundry in the Airbnb rental.
• Entertainment: Many guests prefer Airbnb rentals that have a TV with streaming services or a game console, providing entertainment during downtime.
• Outdoor space: Guests often appreciate an outdoor space such as a patio or balcony, where they can relax and enjoy the Tampa weather.

From Listing to Airbnb

1. Place an offer on this property: If you have a local real estate agent forward them this email and let them know you are interested in the property. If you want help finding the best representation, simply reply to this email and request an agent. Awning will get in touch with its network of agents. It’s best to be qualified for a mortgage, here is a list of lenders that work with Airbnb investors.
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Renovate and furnish the property: This property is easy to renovate and furnish. Then you’ll need some items, which you can find in this Airbnb Host Checklist.
4. Gather necessary documents and permission: You’ll want to consult Florida Short Term Rental Laws. In most cases, you won’t require an attorney as the paperwork process is straightforward.
5. List the property on Airbnb: To list your property on Airbnb you’ll need a description, title and professional photography.
6. Manage the Airbnb: If you choose to self-manage the Airbnb you should not have much trouble finding reliable cleaners in the area.
7. Awning Management: If you choose to use Awning Property Management we can take care of gathering documents and list the property for you. You can learn more about Awning Property Management or reach our team by responding to this email.