How_To_Flip_Houses_In_Florida

How To Flip Houses In Florida

November 17, 2023

Produced by:
Richard Stevens

Richard Stevens is an active real estate investor with over 8 years of industry experience. He specializes in researching topics that appeal to real estate investors and building calculators that can help property investors understand the expected costs and returns when executing real estate deals.

Affectionately known as the Sunshine State, Florida is also well known for the its highly desirable real estate investing opportunities. Populated with gorgeous beaches, world class golf courses and plenty of charming cities, this particular state has much to offer ambitious property investors that want to start flipping properties.

Florida’s varied landscape and collection of desirable cities makes it one of the most popular property flipping areas in the United States. Southwest Florida, Central Florida, Port Richey, Tampa Bay and Fort Lauderdale are all teeming with real estate investment opportunities.

Key Stats About Flipping Houses In Florida

Median Purchase Price

$175,600

Median Resale Price

$247,070

Average Revenue

$71,470

Total House Flips In 2020

6,200

Population Size

21,477,737

Median Household Income

$53,267.

High School Graduation Rate

88.0%

Average Travel Time To Work

27.4 Mins

Best Places for Flipping Houses

  1. St Petersburg
  2. Tampa
  3. Miami
  4. Orlando
  5. Jacksonville

Top 5 Safest Cities in Florida

  1. Weston – Safety Score: 91.42
  2. North Port – Safety Score: 85.53
  3. Port St. Lucie – Safety Score: 85.33
  4. Margate – Safety Score: 83.55
  5. Cape Coral – Safety Score: 83.50

Top 5 Cities with Best Public Schools

  1. Palm Bay
  2. Gainesville
  3. Tallahassee
  4. Cape Coral
  5. Tampa

Please note – All the statistics in this article are based on 2020 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 to start flipping homes, 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 real estate buyers, 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 rental property. South Florida is also a particularly good hunting ground experienced flippers, with Miami being the pinnacle of this particular area.

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. Home 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. Florida 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 are generating $56,468 in revenue per flip. The majority of these flips are funded by way of private financing and hard money lenders. 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 Houses To Flip In Florida

1. Use FlipScout By New Silver

FlipScout is a free tool that can help a house flipper find most profitable real estate investments using data and intelligence. It makes it easy to find a property to flip or rent out anywhere in the country.

2. Leverage The Power of Wholesalers

Finding a good wholesaler can be very rewarding for a real estate investor focused on flipping homes. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Florida.

3. Attend Bank Auctions

Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.

4. Use Direct Mail To Find Off-Market Properties

Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.

5. Sign Up To The Multiple Listing Service (MLS)

Even though MLS listings can be competitive, it is still a good avenue for finding properties suitable for home flipping. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.

6. Find Foreclosures

When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Florida, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.

7. Focus On The Right Areas

To start flipping homes successfully, you need to research the Florida real estate market to the best of your ability. To help kickstart your investigation, it is worth noting that flipping houses is particularly common in these areas:

  • Fort Myers
  • Bonita Springs
  • South Florida
  • Central Florida
  • Port Richey
  • Fort Lauderdale
  • Tampa Bay

You can also reach out to a real estate agent based in your area of focus, to further aid your search for properties with house flip potential.

Final Thoughts

Once you know the local real estate market, it’s makes it easier to start flipping houses in Florida successfully. 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.

Apply For An Investment Property Loan

If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra-fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes, and we take on experienced flippers and inexperienced investors.

Ready To Get Started?

Use Our Loan Calculator To Figure Out The Costs

Our Hard Money Calculator factors in every major expense in the house flipping process. It can help you assess all the upfront costs, interest rates, private money loan repayments and closing costs.

 

Apply for Fix & Flip Funding with New Silver

As a private money lender, we offer instant proof of funds letters which can help you close the property flipping deal much faster than a traditional bank. Our interest rates are competitive, and our application speed is unrivaled.

 

Resources Used In This Post