Flipping a home takes a lot of research and time to get the process down, as every home presents different challenges. However, you can follow the same principles to get consistent results if you break it down by region and state. This will help you navigate each area when you look for the best ways to flip a home. For this article, we’ll go over what’s important for flipping homes in Florida.
Why You Should House Flip in Florida
The first thing to understand is why you should choose Florida for your investment, as flipping a home requires a lot of money and resources. You want to focus your efforts on just one area for your convenience and to get the most out of every dollar. Here are a few reasons Florida is a good place for house flipping.
The first reason Florida is such a good area for house flipping is that the homes in the area are a great price that you can afford while still making a significant profit. They’re easier to afford than many other homes in similar locations around the USA, creating an excellent opportunity for sellers.
Growth in Market Prices
Another reason to try flipping homes in Florida relates to the state’s growth over the last few years. The prices of homes in Florida are increasing at an incredible rate, creating an excellent investment opportunity for flippers. The market shows an over 20 percent growth year over year in home prices across the state in January this last year, according to Redfin reports.
Population Growth in Florida
The population of Florida has been increasing at an explosive rate, with more people moving to Florida than any other state in the country. With an average of over 600 people moving to the state every day in 2021. This growth means more buyers for potential sales for any homes you flip, and you’ve better chances at moving your new home through the flipping process.
Low Tax Rates
Florida has a lower tax rate across the board for those who live there. This can make a massive difference in the efficiency of flipping a home, as you pay taxes on every part of the process. From purchasing the home to all the permits and construction, you can save a lot by buying a place in Florida.
How To House Flip in Florida
Flipping a home in Florida isn’t too different from other places, as you still want to accomplish the same goal. But the process is different enough that it’s important to understand what you can when learning how to best approach house flipping in Florida.
Find the Best Investment for You
The first step for any house flipper is finding a home that fits your needs when making your first investment. You should perform as much research as possible to identify all the potential ways you can improve the sale price of your home without breaking the bank. Look at the location and the nearby process of similar homes to get a sense of the home’s value if you put it up for sale to the general public.
Get Financial Backing
The second step in investing in a home in Florida is getting the money to purchase and fixes up the house. You can do this in many ways, but one of the most common is receiving loans from a bank or other lenders to get the money you need to pay for both the initial price of the property and to cover the budget for renovations.
Determine Your Purpose
When you buy a house and start renovating it, you should first determine why you want that home. Flipping a home generally means you want to sell it, but sometimes you want to hold a property to sell in the future or just use it as your own home. Knowing your plans before buying a house helps you set the proper budget and goals that align with your objectives.
Budget According to Your Plans
Once you know your plans and have the financial backing, you should plan a budget to meet your goals. The general rule that most people follow is the 70 percent rule, where they budget for 70 percent of the final sale of the home. This number includes the cost of the home and all the renovations you’ll need for the house. This way, you’ll still make 30 percent on the home when you’re done, and that’s if you spend your entire budget.
Tips for a Good Investment
There are thousands of plots and homes for sale all over Florida, and finding the right one for flipping isn’t easy. This section will try to go over some of the tips you can use to identify homes that are worth investing in.
Cheap Homes in Good Neighborhoods
When it comes to flipping, buying low and selling high is the main principle, and the best way to do that is by finding cheap homes in the best neighborhoods. A good neighborhood will drive up the prices of even the smallest homes, so you should search for a place with potential that fits well within your budget. Tampa and Orlando are two great places to start your search.
Learn About Local Weather
Florida is a sub-tropical climate with many benefits and downfalls for homeowners and flippers. The weather is generally pleasant all year round, but you need to worry about heavy rainfall and storms because of the weather. Always check to see if bad weather regularly hits the area around your potential home.
Follow Local Building Codes
Every city will have its own building laws, as each community is unique. You should learn about these codes to know if your plans will fit that area. Additionally, some laws require specific structures or features in the home that may impact your designs. For example, all homes within a mile of the coast of many parts of Florida must have impact windows, which may require custom window installation because of the intense storms.
Pay Upfront and With Cash
While this isn’t a tip about Florida alone, it’s one of the things you should know when it comes to flipping houses. Many sellers will give you deals and be more friendly if you prove that you can and will pay with cash. This means you should have enough money to pay the down payment without using a credit card. This will help you get on the seller’s good side and might even save you money.
These tips will help you navigate the housing market in Florida to find the best homes to flip and will help you navigate some of the challenges that come after you find the right home.