When you move up and keep your current Tampa home as a rental, you're making an investment decision that deserves a real pro-forma. Too many new landlords underwrite on rent minus mortgage and discover later that the deal was never profitable.
The full expense picture
Beyond the mortgage (P&I), account for: property taxes (which rise in Florida), insurance (which has been rising sharply), HOA/CDD, property management (8-10% if you're not local), maintenance (1-2% of value/year), capex reserves, vacancy (5-7%), and turnover costs.
The number that matters: cash-on-cash return
Annual cash flow ÷ your cash invested. A property that cash-flows $400/month on $80k down is a ~6% cash-on-cash return - fine in some markets, marginal in others. Compare it to the alternative use of that $80k.
Appreciation is a bonus, not the plan
Tampa Bay has appreciated strongly, but banking on it to make a negative-cash-flow deal work is speculating, not investing. Underwrite to the rent, not the resale.
The tax & depreciation upside
Rental real estate offers depreciation, 1031 exchanges on eventual sale, and write-offs that materially improve after-tax returns. Talk to a CPA - but don't underwrite pre-tax and hope the tax code saves you.
Send me the address and I'll build you a real pro-forma with Tampa Bay rents and expenses.
Sandor Szabo
FLORIDA REALTOR® & MORTGAGE LOAN ORIGINATOR
License #SL3616551 • NMLS #2857504 • Serving Tampa Bay buyers, sellers, and investors with one-stop real estate & financing.