Flipping houses is a great investment strategy for investors looking to turn a profit from their passion for real estate. And while it can be a challenging process, it can also be extremely rewarding and deliver high-profit margins
If you’re looking for a market to fix and flip in, Florida is an ideal location. However, if you’re new to fixing and flipping or this is your first time investing in real estate in the Sunshine State, you may be wondering how to start flipping houses in Florida. Don’t worry, we got you.
Why Should You Fix and Flip in Florida?
Florida is a state that’s ripe for real estate investment. Here’s a few reasons why Florida is a good place to grow your real estate portfolio:
- Rapidly growing population – Analysts predict that there will be a rise of almost 11% in Florida’s population by 2023. More people, more demand for housing!
- A lot of foreclosure properties available – The Sunshine State has the second-highest number of foreclosure properties in the country. Therefore, there’s always an opportunity for a cheap fixer-upper.
- Low taxes – The state ranks 40th out of 52 states for taxation rates. While this doesn’t help circumnavigate capital gains taxes, it does provide financial relief to those looking to relocate and build a property investment portfolio in Florida.
What do these three all add up to? A state that’s almost tailor-made for flipping houses!
If you’re thinking about flipping houses in the Sunshine State, contact an experienced Florida private money lender to get the funds in 3-7 days.
How to Start Flipping Houses in Florida
Everyone flips houses differently. That being said, there are some fix and flip tips that all investors in Florida should adhere to.
So, in a nutshell, here are the steps you need to take to start flipping houses in Florida:
- Do your research on neighborhoods and property types – When it comes to fixing and flipping, you want to have an idea of the kind of properties available and the neighborhoods that are up and coming. Therefore, you should study the local real estate market and contact an experienced and trustworthy realtor to weigh in with their opinion. We’ll talk more about the best places to flip homes in Florida later.
- Go through your budget with a fine-toothed comb – You need to define what budget you have to work with. If you don’t, you’ll be surprised how quickly you end up going over what you can afford. When flipping a house – in Florida or anywhere else – you want to maximize your ARV and hit a ratio of 70:30. Otherwise, the time and effort you put into your fix and flip isn’t worth it.
- Have an exit strategy in mind – Before starting flipping houses, you need to decide what your end game is. Are you looking to fix and flip it within six months? Or are you looking to use the BRRRR method and turn the property into a source of passive income? Your exit strategy will inform a lot of choices you make during the renovation process as well as your own time frame. So, it’s best to choose an exit strategy as soon as possible.
- Securing financing – When you’ve got a property in mind, you need to secure funding. This is where We Lend LLC comes in. Our private money loans are tailor-made for flipping houses and, what’s more, you can usually get your deals financed within a week of applying for funds.Therefore, we recommend contacting us – as an experienced Florida private money lender – to get the ball rolling on your Sunshine State fix and flip.
Best Places to Flip Homes in Florida
As we’ve talked about, the state of Florida is awash with opportunities to invest in real estate. Furthermore, there’s never been a better time to do so.
However, we’re also aware that while talking about the third-most-populous state in the country, it can be difficult to know what the best cities for flipping houses actually are. With that in mind, we’ve included the top 5 cities we believe are the hottest for fix and flip opportunities.
- Tampa – Tampa is an embodiment of Florida’s ever-growing population, with an average of 150 new residents everyday. This highlights the opportunity for property in the area and the opportunity to fix and flip. However, with appreciation rates going up throughout Tampa, you want to ensure that you move sooner rather than later.
- Orlando – Due to high demand, inventory in Orlando is a little bit low right now. However, there are still investment properties popping up everyday. And although Orlando is not the easiest city to invest in, it’s popular for a reason and should not be overlooked.
- Miami – In Miami, foreclosed properties are available in abundance. In fact, in 2019, foreclosure properties increased by 7% in the city. Furthermore, this is due to increase in 2021. This makes Miami one of the best cities in South Florida to fix and flip.
- Jacksonville – Even during these times, Jacksonville’s economy is comparatively doing well. Much like Tampa, this has resulted in an influx of people coming into the city. However, the city itself is still affordable for both buyers and sellers. This makes it an ideal location to start building your fix and flip portfolio.
- Fort Lauderdale – There’s been a lot of investment in Fort Lauderdale over the past few years. As a result, the city is expected to garner more interest and residents in the next five years. It also has a lot of distressed properties to choose from. So, if you want to be ahead of the boom, Fort Lauderdale is a good location for a fix and flip.
Not based in these cities? Don’t worry, we lend in every county in the Sunshine State. Click here to learn more.
With a rapidly growing population, affordable real estate, and a large range of foreclosure properties available, Florida is a state practically built for real estate investment.
That being said, fixing and flipping isn’t easy. So while it’s tempting to go alone, you should bring in a real estate dream team who understand the local market well. This should include a local realtor, a highly-recommended contractor, and an experienced private money lender. That way, you’ll have guidance through your journey and are increasing your chances of success.
What are you waiting for? Apply today to get the funds for your first Florida fix and flip ASAP.