Help analyzing SFH w/ detached garage apt FLIP in Tampa, FL
Realtor · Orlando, FL · Member since 2019 · 20 posts · 3 votes
I know there’s a ton of info on this but I have a few areas of concern with a property I am evaluating to flip in Tampa. Specifically, old Seminole Heights / Sulphur Springs area.
It’s a 5/2, 1721 sf, built in 1930, needs total rehab, 50-60k. There’s a detached structure that’s been framed out for a 2/1. Under contract for 125k.
1. Trying to determine ARV. Is it based on rent income, multifamily, or SFH with in-law suite comps? It's in a decent rental area, but low income. The end buyer would most likely be an investor.
2. The county appraiser stated this home is a 2/1 with a utility building added in 1987. It’s the correct sf, but not bed and bath. Not one permit recorded for this parcel, ever. There have been no additions or layout adjustments on the interior, it looks straight out of 1930. What are the challenges I’ll face with building/permits division and resale?
Any advice would be helpful, from Tampa investors/experts or not. Thank you!
I know there’s a ton of info on this but I have a few areas of concern with a property I am evaluating to flip in Tampa. Specifically, old Seminole Heights / Sulphur Springs area.
Hi Carrie,
Sounds like a cool deal. Is there a specific reason why you would want to flip it? As an alternative scenario you could turn that detached garage into an ADU. I wish we had a lot of properties with detached garages in the Orlando area, but sadly we do not.
-Matt
@Matt Nico Hi! I'm using private money and the initial exit strategy is to sell. I can refi and offer him 10% ROI to hold it, but he'd prefer that 10% a lot sooner. I'm not familiar yet with a cash out refi lender that will allow me to do that in less than 6 months. And yea, Orlando is maxed out!
@Carrie Mims first off there is a huge difference in arv between OSH and sulphur springs. If this is in sulphur springs your profit margin is going to be alot smaller.
for your specific questions:1) I would base it on SFH comps. 2) kinda depends on the scope of work of your rehab. If your planning on doing a gut and completely renovating it wont really matter because you will be bringing everything up to code. If you are trying to pull permits for just a couple things, you might open a can of worms if inspectors notice un-permitted work, want engineering drawings, etc . If you can do rehab without pulling permits it would probably be your cheapest route but your resale options may drop due to potential issues with lenders, appraisers, insurance, but if you produce a quality product and it has good rental income you will likely find an investor still willing to buy it.
@Sean Drees Hi Sean, thank you for the input. This is a home near Nebraska and just south of Waters. Definitely Sulpher Springs but I saw a sign for OSH so wasn’t too sure where that line was.
The home appears gutted in most areas and the 2/1 interior is framed out with separate electric and hvac already complete. I wanted to have permits pulled for necessary work but not go thru a GC for the entire project to save on costs.
The intention is to bring it to code with rent-ready finish for turnkey investment.
My concern would be if I could not sell it and need to refi it thru a bank, I’d want to make sure it appraised.
Hello Carrie Mims, I live just South of Sligh Ave off Nebraska, behind the Post Office. I am fixing my 1950's, 1000 sq. foot, 3/1, block home with two sheds in the back, to look like new, Rental Ready, but, not full of new bling like the rehabs you see on Zillow. Asking $199,900 in a month and it will be Tax-free sale of my Residence. The one thing that I would not do, is to buy a home that I would not live in. Your in Orlando, a Pro and you want to buy a big, old, fixer upper in the War Zone? Sulphur Springs is where my girlfriend grew up and when we drive through there she says she misses her friends, but, would never go back. Where the River winds around going East of Nebraska about six blocks, there was a Brand New 3/2 with garage For Sale last month for $250,000. That's our competition in this area. Three months ago I went Searching for a Pool Home in the area where I want to move to and I found six of them for under $200,000 that I could fix up on my own in a month, that would be worth $250,000. All of them have been Sold and I am now thinking to just buy, all Cash, a 3/3 Townhome with at least 1500 sq. feet and a garage. I need to move my stuff so I can refinish the terrazzo floors in my 3/1 and complete the Sale. I can move in and as my Residence, get a low interest HELOC from Republic Bank for 80% LTV. With that money I am setting up to buy all Cash, a 3/2, 1400 sq. foot, two car garage, with a popped pool that is Off Market and fix it for my one Rental. I can also get it ready in a month for cheap and rent for $1800 a month. Then, I can get a Mortgage on that one and I will make an offer on the property my friend has not been able to sell, for all Cash, to Flip or make it Airbnb. The 4/3 across the street is renting almost every day as Airbnb for $230 a day. I am Closing any day now, on my 4 Commercial lots in S. Tampa, just off Dale Mabry Hwy. I will clear $350,000 and use up the rest of my Deductions from the 2008 Economic Collapse. Then, I will make $50,000 off the sale of my Residence and you only need $200,000 to find and fix up some of the properties that I have been finding in Hillsborough County. There is no reason to look for a bad area to fix up an old wood frame structure and try to make money. You know you get the best Financing to move in and make it your Residence for one year. Problem is that no one wants to move and take advantage of the rules. I have more properties outside of Rio and all those are going to be fixed up and ready to rent and sell and you can buy another property within 90 days in Brazil and it is Tax-free transfer. Your an Agent. You should have people knocking on your door asking for help to sell something in Orlando. No? Agents who do Flips, have connections.