Affectionately known as the Sunshine State, Florida is also well known for the its highly desirable real estate. Populated with gorgeous beaches, world class golf courses and plenty of charming cities, this particular state has much to offer aspiring property investors.
Key Stats About Flipping Houses In Florida
Median Purchase Price
Median Resale Price
Total House Flips In 2019
Median Household Income
High School Graduation Rate
Average Travel Time To Work
Top 5 Cities for Flipping Houses
- St Petersburg
Top 5 Safest Cities in Florida
- Weston – Safety Score: 91.42
- North Port – Safety Score: 85.53
- Port St. Lucie – Safety Score: 85.33
- Margate – Safety Score: 83.55
- Cape Coral – Safety Score: 83.50
Top 5 Cities with Best Public Schools
- Palm Bay
- Cape Coral
Please note – All the statistics in this article are based on 2019 data. You can view the data sources at the bottom of the article.
What You Need To Know About Real Estate In Florida
For real estate investors, it’s important to get to know the local property market in detail before making an offer to purchase a property. Over the past year alone, Floridian home values have increased by 6% alone and are projected to keep increasing on this trajectory for the rest of 2020 and beyond. Investors who purchase property in Florida benefit from historically good rates of return, increase in equity, as well as income and capital gain tax advantages. At present, the median price for property in Florida is $246,107, and the market is still heating up.
However, the different cities within Florida can have very different real estate markets, so the investor will have to do their homework to find a location most suited to their goals. Some of the cities within Florida that are considered to be performing well in terms of real estate are St. Petersburg, Orlando, and Tampa to name only a few.
Florida is also popular with buyers, as due to the thriving economy, wide access to amenities that are popular with a variety of home buyers and has a busy influx of vacation-goers looking for short-term rentals.
Simple Tips for Flipping Houses in Florida
House flipping refers to the process of buying a property, renovating it and reselling it for a profit. Flipping can be a lucrative source of income to the investor that selects the right property and practices a good strategy to stay on budget. Fix and flip properties are commonly older homes that can achieve a higher market value with some basic renovation.
On average, house flippers throughout the Florida area see are generating $56,468 in revenue per flip. The majority of these flips are funded by way of private financing, or hard money loans. Banks do not normally grant loans to lenders of this type due to the amount of risk involved for the lender in the transaction.
How To Find A Property To Flip
As a real estate investor interested in how to flip houses in Florida, selecting the right property is critical to success. There are many different types of real estate to invest in, from residential to commercial, with both categories offering rental opportunities. Demand for homes in Florida has been growing, but no matter the location or type of real estate investment, off-the-market deals can be the sources of some of the most valuable real estate investment opportunities.
Off-the-market properties can be found through multiple sources, such as auctions, wholesaling, short sales or direct mail. When selecting a property to purchase, try to view any properties you view through the eyes of a potential buyer. The best fix and flip properties are those needing only minor renovation or repair to become suitable for sale, rather than major structural changes
Once you know the local market, it’s easier to know how to flip houses in Florida for success. By selecting the right property, and exploring leads like off-the-market deals, flipping can be very lucrative for the investor. The Floridian housing market is expected to continue growing and poses a lot of opportunities for real estate investors. Investors should follow the golden 70% rule when flipping a property, and make use of a quick and reliable hard money lender like New Silver for their financing needs.
Lastly, it is also imperative that you understand how to calculate ARV when assessing potential properties to fix and flip in Florida. This simple guide explains the ARV formula in much greater detail.
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