For investors considering a property in South Tampa’s 33606 ZIP code, the purchase price is only the beginning. The real question is: What will it actually cost to acquire the property and get it ready for the next stage of the investment?
After more than 40 years of combined real estate experience, Emeri and Joe Lewkowicz of The Lewkowicz Group have learned that successful investors don't evaluate a property based on the asking price alone. They look at the total acquisition cost—because that number ultimately determines how much capital is invested and whether the opportunity makes financial sense.
Start With the Purchase Price—But Don't Stop There
The easiest number to identify is the negotiated purchase price. But investors should immediately build on that figure by adding every cost required to complete the acquisition.
For a property in 33606, that may include:
Purchase price
Loan origination and lender fees
Appraisal and inspection costs
Title and closing expenses
Recording fees
Florida documentary stamp taxes and other applicable financing taxes
Prepaid property taxes and insurance
Survey or other due-diligence expenses
HOA or condominium-related fees, if applicable
Immediate repairs or improvements
As Emeri and Joe often tell their clients, “The price you negotiate isn't necessarily the price you pay.” Your acquisition budget needs to account for the entire transaction.
Don't Underestimate Due Diligence
This is especially important in 33606, where investors may encounter everything from historic homes and established single-family properties to condominiums and higher-value residences in neighborhoods such as Hyde Park and Davis Islands.
A professional inspection can uncover issues that aren't obvious during a showing. Depending on the property, investors may also want to investigate the roof, electrical and plumbing systems, structural condition, flood exposure, insurance requirements and other property-specific concerns.
These expenses may occur before closing, but they are still part of the cost of acquiring the investment.
Calculate Financing Costs Separately
If you're financing the purchase, calculate your acquisition costs using the actual loan amount—not simply a percentage estimate.
Include lender fees, appraisal costs, mortgage-related taxes, prepaid interest and any required escrow deposits. Florida also imposes documentary stamp taxes on certain real estate and mortgage documents, so investors should have their lender and closing professional provide a property-specific estimate.
Emeri and Joe recommend getting these numbers early. Knowing the financing costs before making an offer can help you determine how much cash you truly need to bring to the transaction.
Look Beyond the Seller's Tax Bill
Property taxes deserve special attention in Florida. Investors should not automatically assume the seller's current tax bill will be their future expense.
The Hillsborough County Property Appraiser determines assessed values and processes exemptions, while taxing authorities establish the applicable millage rates.
A property owner's homestead exemption and other circumstances can affect the existing tax bill, so investors should investigate the property's assessment and estimate future taxes based on their own ownership situation.
Use a Simple Acquisition Cost Formula
Emeri and Joe recommend thinking about the investment this way:
Total Acquisition Cost = Purchase Price + Closing Costs + Due-Diligence Costs + Immediate Repairs/Improvements + Financing Costs + Initial Reserves
For example, if an investor purchases a 33606 property for $800,000, spends $20,000 on acquisition-related costs, and immediately invests $80,000 in renovations, the investment isn't an $800,000 purchase.
The investor has committed approximately $900,000 before considering ongoing holding costs.
That distinction can dramatically change the projected return.
The Lewkowicz Group's Approach to Investment Analysis
With more than four decades of combined experience in Tampa real estate, Emeri and Joe Lewkowicz know that the best investment decisions come from understanding the whole financial picture.
For a property in ZIP Code 33606, they encourage investors to look beyond the listing price and evaluate acquisition costs, renovation requirements, taxes, insurance, financing, holding costs and the property's realistic future value.
A great investment isn't necessarily the property with the lowest purchase price. It's the property where the numbers still work after you account for everything it takes to acquire, improve and ultimately own it.
If you're evaluating an investment opportunity in South Tampa's 33606 ZIP code, Emeri and Joe Lewkowicz can help you look at the numbers from a local market perspective—and make a more informed decision before you commit your capital.
