The real estate industry in Florida presents short-term property investment options.
Florida’s real estate partnerships frequently release more development plans, with ownership prices reaching approximately $364,000. This uptrend and the extensive number of job openings have attracted more U.S. citizens to the state.
This guide teaches side-income enthusiasts how to start flipping houses in Florida. Discover which cities present high-volume real estate deals and the associated costs.
- Why Should You Consider Flipping Houses in Florida?
- Is Flipping Houses in Florida Profitable?
- Best 5 Cities to Flip Houses in Florida
- How to Start Flipping Houses in Florida: 7 Steps
- How Much Does It Cost to Flip Houses in Florida?
- Is the Current Housing Market Good in Florida?
- Do You Need a License to Flip Houses in Florida?
- Other States to Look At for Profitable House Flipping
- Wrapping Up
Why Should You Consider Flipping Houses in Florida?
Here are some reasons to begin your real estate investments journey in Florida:
Rising Population
With Florida’s population count expected to hit 26 million by 2030, more people will look for housing options.
Some cities are growing at an average of 2% year-over-year. Since different localities quote greatly varying rates, you’re likely to find a town to flip properties suitable for your budget.
The skyrocketing population also corresponds to a stronger economy. This brings in job growth and plenty of economic activity.
Low Property Tax Rates
The Florida housing market has relatively low property tax rates compared to other territories in the U.S. The government charges no inheritance, estate, or intangible goods tax. Though counties can request a local tax, a 3% limit keeps it affordable. Such benefits lead to lower holding costs.
The favorable tax environment helps retirees on fixed incomes. Thus, real estate investors choose homes that need renovation and specifically sell properties to senior citizens after refurbishing.
Flipping homes becomes easier since low property taxes and the state’s lifestyle offerings can stimulate the Florida real estate market.
Government Offers Assistance to First-Time Homeowners
Many official small business lenders offer loan plans with remarkably low-interest rates. The government also presents financial incentives like down payment assistance. This promotes homeownership by helping those without the necessary upfront funds or credit history.
The state inspires community development through first-time homebuyer programs. These attempts transform a region that’s declining into a more livable neighborhood. Look for government support in building equity and then buy properties as a long-term asset.
Vacant Homes Across the State
Home flippers interested in popular cities can look at Orlando, Miami, and Tampa. While Orlando has around 161,000 vacant properties, Miami has approximately 143,000 empty homes.
If you’re searching for remote areas with fairly decent economic opportunities, look at the northern part of Jacksonville.
We recommend checking the U.S. Census Bureau for data on housing vacancy rates in a particular area.
Is Flipping Houses in Florida Profitable?
Yes, house flipping in Florida bought in an average of $75,000 as gross profit. The country’s housing market shifts expect a low activity period during 2023. This means that an active real estate investor would purchase a cheap house at a lower rate, making larger profits later.
A National Housing Survey by Fannie Mae states that only 18% of participants felt financially ready to buy a new home. This calls for a higher demand for rental properties, which helps flippers earn extra monthly revenue.
Best 5 Cities to Flip Houses in Florida
Orlando
Orlando’s contribution to the state economy remains noteworthy since many enterprises promote industry-wide employment. This population growth builds the demand for housing.
Not to forget the premium entertainment parks in Orlando. Walt Disney World, Seaworld, Legoland, and Discovery Cove promise to introduce more tourist footfall compared to other states.
- Median property price: $375,000
- Year-over-year property value growth: +0.5%
- Year-over-year population growth: +1.62%
Naples
Naples presents an abundance of luxury investment properties to flip for higher profits. The excess bookings for vacation rentals and second homes help earn rental income.
The high value of these homes means the renovation prices are also higher than usual. Double-check the expected expenditure to verify whether the repair estimates exceed your available funds.
The lower-than-average state income tax may sometimes justify the high purchase price. Take note of the 50% rule for any renovated property in Collier County. This can save you from unnecessary add-on costs in your house-flipping business.
- Median property price: $701,000
- Year-over-year property value growth: +12.2%
- Year-over-year population growth: 1.98%
Crestview
Crestview is now called the “Hub City”. It’s interconnected to State Road 85, U.S. 90, and Interstate Highway. This convergence with three popular highways ensures you can maximize your flipping profits.
Investment properties in Crestview bring great returns because of their proximity to military areas like Eglin Air Force Base. The lower-than-average property costs make it affordable for entry-level house flippers.
Its small-town setting makes suburban growth a constant in the area.
- Median property price: $310,500
- Year-over-year property value growth: +12.9%
- Year-over-year population growth: +1%
Fort Lauderdale
The steady appreciation over the last decade makes Fort Lauderdale a lucrative house-flipping destination. This location is rightfully called the “Venice of America” owing to its melting pot of arts and culture.
You can leverage the presence of a major seaport where numerous cruise lines depart, such as the Royal Caribbean and Holland America.
These features ensure you earn at least the median resale price for every house flip.
- Median property price: $515,000
- Year-over-year property value growth: -0.96%
- Year-over-year population growth: -0.61%
Cape Coral
Cape Coral’s waterfront setups make it a desirable market for house flipping. Though property repairs could be a major expense, the natural traits of the location reduce the need for high marketing costs.
The aftermath of past hurricanes may discourage buyers from investing in homes. But, the low crime rate and high education standards balance out the occasionally scrappy weather.
The real estate market in Cape Coral has ready-to-occupy single-family homes, condos, and boutique properties.
- Median property price: $405,000
- Year-over-year property value growth: -3%
- Year-over-year population growth: +2.75%
How to Start Flipping Houses in Florida: 7 Steps
Here are seven steps to follow when flipping homes in any city in Florida:
Step 1: Compare Locations and Property Types
Choose your preferred locations and study data regarding purchase pricing and property demand. Either inquire with a real estate agent or subscribe to tools offering neighborhood analytics.
These tools recommend investment strategies based on your budget and profit goals.
Track government development projects for airports, schools, and major transportation routes. New projects can multiply your property value over time.
Look for nearby amenities like grocery stores and parks. This way, you can better judge the property’s suitability for a full-time occupant.
Step 2: Perform Home Inspection
Assessing the property’s condition beforehand can help tweak your budget. Test the in-built plumbing and electrical systems to avoid complaints after your purchase.
If you find any flaws with the roofing or HVAC setups, try fixing them yourself to multiply sweat equity. For instance, applying a fresh coat of paint to the interiors and installing new tiles independently can save money.
Many expert property resellers prioritize foreclosed properties. They have more room for growing sweat equity and winning higher ROIs.
As a thumb rule, don’t pay more than 70% of the property’s after-repair value (APV). This means flippers mustn’t spend more than $700,000 for a $1,000,000 home. Remember, the lower this percentage value, the higher your profits.
Step 3: Gauge Your Financial Standing
Few flippers can pay cash for property renovation and acquisition. Consider doing a thorough calculation to assess your financial position to meet the associated costs. If the funds aren’t adequate, seek the assistance of hard money loans.
Flippers who rely on private investors must check their debt-to-income ratio and credit history. Both parameters help money lenders decide whether you can repay the loan.
Create a flip accounting sheet that addresses all such metrics. Remember to add paperwork, consultancy, and any third-party contractor work costs.
Step 4: Register For The Multiple Listing Service (MLS)
These repositories share insights on to-be-developed and ready-for-occupancy homes. Expect accurate findings since property experts manage this database.
From statistics of monthly rentals to overhead maintenance costs, there’s enough data to make a well-informed purchase decision.
Step 5: Gather Funds
Most houses you flip in this business would demand some expenses for renovations. Both hard money lenders and flipping investors are common suppliers of such extra cash.
Flipping investors can better guide you at the beginning of your house flip journey, but, in return, you should demonstrate to them you can complete deals and build relations with high-ticket clients.
Either way, they’re more than happy to cover a property’s repair value in exchange for a share in the resale value.
Step 6: Make High-Value Renovations
Your ability to pick an investment property and redesign its interior and exterior presentation helps you quote higher.
Many buyers may base their decisions on the property’s curb appeal. Work on the outdoor landscape by improving the porch, garden area, and siding.
In case of significant additions, remember to pull permits. This ensures all parties are sure that renovation is done as per the area’s building code.
Step 7: Rent or Sell The Property
There are two primary means to monetize your home-flipping business. First, either sell it for a one-time profit. Second, look for long-term rental occupants with stable incomes.
Use flat fee MLS services to list your properties without adding expenses for realtor consultancy. Practice promotional activities by placing a yard sign or creating social media content to attract buyers.
With 86% of sellers using this platform, data shows that homes on MLS sold faster.
How Much Does It Cost to Flip Houses in Florida?
The average cost to flip houses in Florida varies based on the number of bedrooms, location, and renovation costs. Typically, expect to pay approximately $30,000 for renovation. While median home values average $410,000, labor costs vary based on the region.
Some additional factors include rehab costs, attorney fees, and down payments.
Is the Current Housing Market Good in Florida?
With over 65,000 square miles of land coverage, many people find high-return projects when flipping houses in Florida. The government’s attempts to increase access to affordable housing also considerably reduce closing costs. At only 2.3% of the cost price, property flippers in 2023 can easily capitalize on the housing market in Florida.
The increasing footfall of tourists also pushes the demand for more houses. Thus, you can pocket large sums of rental income by owning multiple homes.
Do You Need a License to Flip Houses in Florida?
No, you don’t need a license for flipping houses in Florida. However, contractors dealing in renovations may need permission to meet local regulations. These can either be specialized trade or general contractor licenses.
Other States to Look At for Profitable House Flipping
Here are additional states that present profitable opportunities for house flipping:
- Flipping Houses in California: The influence of technology hubs like Silicon Valley drives housing demand. California’s homes also hold tremendous potential for modernizing their amenities.
- Flipping Houses in Texas: The evident presence of the energy sector makes Texas’s real estate market volatile. Flippers can capitalize on the affordability the state’s properties have to offer.
- Flipping Houses in New Jersey: Research the historic properties of New Jersey to partake in restoration projects. New Jersey’s beachfront homes attract year-round residents.
Wrapping Up
Flipping houses can take half a year to see profits in your bank account. From scouting properties to negotiating deals, the step-by-step process is a learning experience.
The support of hard money lenders and private loan programs can provide you with working capital. Make sure to do groundwork by speaking to fellow home flippers and long-term neighbors in the area.
If you’re looking at alternative roles in this industry, consider becoming a real estate agent.
Do drop your comments below and share this piece with real estate enthusiasts.
