Flipping Houses in Florida
If you're interested in flipping houses in Florida but need help figuring out where to start, we're here to help!
Flipping houses is a property investment strategy where you buy a house at a lower price and renovate it to sell at a profit. The main goal here is to make the property a lot more appealing to buyers, thereby increasing the market value and, consequently, the selling price to drive up your profit margin.
Florida, in recent years, has had a strong housing market, with home prices going up by 5.8% in 2022 compared to 2021. The median price sits comfortably around $384,509, with Marco Island, Doral, Venice, Sebastian, and Gainesville having the fastest-growing sales prices. Florida was also the country's fastest-growing state in 2022, increasing in population by 1.9%. This move can be attributed to the warm climate, job opportunities, and pristine beaches. Making this sunshine state a ripe place for property investments.
In this article, we'll give you an introduction to the concept of flipping houses in Florida and the housing market in Florida. We'll also provide tips on finding the right property, renovating the property, and selling the renovated property. Plus, we'll recommend the best cities in Florida for flipping houses.
Let's get started!
Finding the Right Property for Flipping
When you're looking for how to start flipping houses in Florida, it's important to find one that is in a good neighborhood and has the potential for renovation. It would be easier to up-sell a house in an area with a low crime rate, walkability, good social amenities, and friendly neighbors.
Here are a few tips to help you find the right property:
Do your research
Look up recent sale prices in the neighborhood and see what kind of houses are selling and for how much. This will give you an idea of what renovations you need to turn a profit.
Find houses with realistic repairs
Look for properties that need cosmetic repairs only. These houses may need a new coat of paint, new flooring, or minor repairs. These repairs are relatively cheap and can be done relatively quickly.
Avoid properties that need major renovations. These houses will require more time and money to fix up, and you may not see a return on your investment when you sell them.
Look for properties with good curb appeal. A good-looking house will attract more buyers than a house that looks like it needs some TLC (tender loving care).
Understand your target market
Keep in mind your target market when choosing a property to flip. If you're flipping houses for sale to young families, for example, then you'll want to look for properties in neighborhoods with good schools and plenty of amenities.
If you're flipping houses to sell to retirees, then you want a neighborhood with good hospitals and a serene environment.
Take note of flood-prone areas.
Since Florida is quite a flood-prone state, be sure to choose a house to flip in an area that is less prone to floods, such as Orlando, Ocala, Marianna, and Lake City.
Know the rules
Also, ensure you know the rules for flipping houses in Florida, so you don't get caught off guard or stress yourself unnecessarily. For instance, you don't actually need a license to perform any house-flipping activities in Florida.
Renovating the Property
Renovating a property can be a daunting task, but we're here to help. Here are some tips to get you started:
- Create a budget to work with, keeping in mind that you would most likely spend around 20% more.
- Get a contractor to help you out.
- Ensure you do an inspection before committing to flipping any house.
- Start by repairing any damage to the property. This might include fixing broken windows, doors, or walls.
- Next, upgrade the property's features and finishes. Install new flooring, tiles, or cabinets.
- Paint the walls and ceilings in a new color to give the property a new look.
Kitchen and bathroom renovation increase homes' value the most. Also, consider making window replacements; a good window gives a home a good facelift!
Selling the Renovated Property
Congratulations, you've successfully renovated your property and are now ready to sell it! But how do you go about it? What are the steps involved?
1. First and foremost, you'll need to find the right real estate agent.
Not all agents are created equal, so you'll want to find one who has a lot of experience in flipping houses. They should be able to guide you through the entire selling process and help you get the best price for your property.
2. Next, you'll need to stage your home appropriately.
This means decluttering and depersonalizing it as much as possible and ensuring it is clean and well-maintained. You may also consider hiring a professional home stager to help you out.
3. Finally, you'll need to price your home correctly.
It's important not to overprice or underprice, as this could hurt the sale. Your agent should be able to help you come up with a fair price that will attract buyers without devaluing your property.
You can do a comparative market analysis to get the prices of similar houses in the vicinity that just recently sold to have an idea of what the price of your house may be. You can also follow the real estate pricing pyramid to try and find the balance between your home's asking price and the number of people that would come to look at the house. The lower the price below market value, the more your potential buyer pool increases, and vice versa.
Best Florida Cities for Flipping Houses
When it comes to flipping homes, some of the best cities in Florida for making a profit are Miami, Tallahassee, Tampa, Jacksonville, and Orlando. The market for flipping properties in these five cities is competitive but lucrative because of the high population rates and desirable real estate locations.
Miami
Miami is a very big city in Florida, with a population density of around 2,578 residents every square mile. This city is recognized for its beaches and nightlife. It's no surprise that flipping in this city is very big, with a median home price of $475,000 as of 2022, a whopping 17.3% increase from 2021. However, even though the number of sales per year has declined between 2021 and 2022, this city still shows the most promise out of any other in Florida.
Tallahassee
In Tallahassee, investors can find property at lower prices than in other cities due to its college-town status. The median home price is around $250,000 as of 2022, a 15.7% increase from the previous year. Still, this city is one of the most affordable in Florida.
Tampa and Jacksonville
In Tampa and Jacksonville, homeowners can find numerous opportunities to purchase fixer-uppers and renovate them into profitable rental units or houses to sell at a higher value due to their vibrant economies. With Tampa's median homes value at $357,000 and population of around 387,050 people, and Jacksonville's median home price of $300,000 and a population of around 954,614 people, both cities are prime places for flipping houses in Florida.
Orlando
Finally, Orlando offers some of the highest returns on investment in Florida due to its enormous tourism industry. Theme parks and several attractions abound in this city. Also, Orlando is three times denser than the Florida average, and around December 2022, there were about 592 homes sold. However, prices are slightly higher than in other cities in the state, as the median home price is $350,000.
Finding houses to flip in these cities aren't that difficult. Just work with local real estate agents and attend real estate investment events.
Wrapping it Up
Flipping houses in Florida can be a great way to make money in the current housing market. Ensure you work with a local real estate agent, understand the market and do your due diligence before buying. And by following the proper rules and guidelines, you can make a profit while renovating a property.