Advice on Duplexes in Florida

12 Replies

Hey everybody! I could use some advice from those of you who are boots on the ground in Florida. I appreciate any replies in advance!

I'm planning a move to Florida and I'm trying to figure out if there's any cities I could pick up a side by side fixer duplex for ~140k (or ideally less) in a B to C neighborhood. Is that even realistic at this time? I understand the competition is hot in Florida and multi families are priced really high right now.

I check the online sites regularly and find duplexes listed for ~200k but they're usually already remodeled, so I assume there's a deal or two somewhere..

I should add that I'll be using FHA financing so maybe fixer duplex is the wrong description, dated perhaps, so I could still use the FHA loan if that makes sense.

Hello Brandon,

I live in VA. I've been looking for properties in Florida. Mainly in the Orlando and Tampa area. Multi-family properties have exploded in price. There are few areas around Orlando where the prices are relatively low compared to the Tampa market. I think most of those properties are going to be in the 200-300 range. I see you mentioned a using an FHA loan. I think it would be tough to get a fha loan on a fixer. Have you looked at conventional loans. If you plan on living in the property you can get a loan with 5-10% down. Try to find a wholesaler in Florida to see you can find some better deals.

Originally posted by @Brandon T. :

Hey everybody! I could use some advice from those of you who are boots on the ground in Florida. I appreciate any replies in advance!

I'm planning a move to Florida and I'm trying to figure out if there's any cities I could pick up a side by side fixer duplex for ~140k (or ideally less) in a B to C neighborhood. Is that even realistic at this time? I understand the competition is hot in Florida and multi families are priced really high right now.

I check the online sites regularly and find duplexes listed for ~200k but they're usually already remodeled, so I assume there's a deal or two somewhere..

I should add that I'll be using FHA financing so maybe fixer duplex is the wrong description, dated perhaps, so I could still use the FHA loan if that makes sense.

 Unfortunately this price point is likely not available in most of the Florida market at this point. I did have one client pick up a side-by-side duplex in lake Wales Florida earlier this year for less than $140,000 but prices have really gone up since then.

Promotion
Ashcroft Capital
A national multifamily investment firm
Three Reasons Investors May Prefer Real Estate
Read three reasons why investing in real estate private placements may provide several advantages.
Read More Here
Originally posted by @Zachary R Sink :

Hello Brandon,

I live in VA. I've been looking for properties in Florida. Mainly in the Orlando and Tampa area. Multi-family properties have exploded in price. There are few areas around Orlando where the prices are relatively low compared to the Tampa market. I think most of those properties are going to be in the 200-300 range. I see you mentioned a using an FHA loan. I think it would be tough to get a fha loan on a fixer. Have you looked at conventional loans. If you plan on living in the property you can get a loan with 5-10% down. Try to find a wholesaler in Florida to see you can find some better deals.

Hey Zachary! Thanks for the reply, I was under the impression that conventional loans had the same property requirements as FHA so that's really helpful as well as your tip on looking for a wholesaler, I appreciate it.

Originally posted by @Tyler Gibson :
Originally posted by @Brandon T.:

Hey everybody! I could use some advice from those of you who are boots on the ground in Florida. I appreciate any replies in advance!

I'm planning a move to Florida and I'm trying to figure out if there's any cities I could pick up a side by side fixer duplex for ~140k (or ideally less) in a B to C neighborhood. Is that even realistic at this time? I understand the competition is hot in Florida and multi families are priced really high right now.

I check the online sites regularly and find duplexes listed for ~200k but they're usually already remodeled, so I assume there's a deal or two somewhere..

I should add that I'll be using FHA financing so maybe fixer duplex is the wrong description, dated perhaps, so I could still use the FHA loan if that makes sense.

 Unfortunately this price point is likely not available in most of the Florida market at this point. I did have one client pick up a side-by-side duplex in lake Wales Florida earlier this year for less than $140,000 but prices have really gone up since then.

 Thanks for the reply! Looks like I might have to make a higher price point work.

Originally posted by @Brandon T. :
Originally posted by @Zachary R Sink:

Hello Brandon,

I live in VA. I've been looking for properties in Florida. Mainly in the Orlando and Tampa area. Multi-family properties have exploded in price. There are few areas around Orlando where the prices are relatively low compared to the Tampa market. I think most of those properties are going to be in the 200-300 range. I see you mentioned a using an FHA loan. I think it would be tough to get a fha loan on a fixer. Have you looked at conventional loans. If you plan on living in the property you can get a loan with 5-10% down. Try to find a wholesaler in Florida to see you can find some better deals.

Hey Zachary! Thanks for the reply, I was under the impression that conventional loans had the same property requirements as FHA so that's really helpful as well as your tip on looking for a wholesaler, I appreciate it.

If you want to try to buy a fixer, I suggest using an FHA 203k loan. This is a renovation loan where the property doesn't even need to be habitable at the time of purchase. With an FHA 203k loan you can borrow up to 110% of the after repair value. This would require three and a half percent down but it would fund the renovations of the property. This kind of deal is not simple and not for the faint of heart so consider it with a grain of salt.

Originally posted by @Tyler Gibson :
Originally posted by @Brandon T.:
Originally posted by @Zachary R Sink:

Hello Brandon,

I live in VA. I've been looking for properties in Florida. Mainly in the Orlando and Tampa area. Multi-family properties have exploded in price. There are few areas around Orlando where the prices are relatively low compared to the Tampa market. I think most of those properties are going to be in the 200-300 range. I see you mentioned a using an FHA loan. I think it would be tough to get a fha loan on a fixer. Have you looked at conventional loans. If you plan on living in the property you can get a loan with 5-10% down. Try to find a wholesaler in Florida to see you can find some better deals.

Hey Zachary! Thanks for the reply, I was under the impression that conventional loans had the same property requirements as FHA so that's really helpful as well as your tip on looking for a wholesaler, I appreciate it.

If you want to try to buy a fixer, I suggest using an FHA 203k loan. This is a renovation loan where the property doesn't even need to be habitable at the time of purchase. With an FHA 203k loan you can borrow up to 110% of the after repair value. This would require three and a half percent down but it would fund the renovations of the property. This kind of deal is not simple and not for the faint of heart so consider it with a grain of salt.

Hey Tyler! I'm aware of the 203k loan, isn't it true that you have to hire contractors to do the work for you? I've done flooring, cabinets, tile surrounds, drywall, paint, etc. so I'd like to use my own labor to save on the reno cost if possible. If there was a way I could do a 203k and do most of the work myself that would be ideal but as far as I know I would have to hire everything out. Thanks for your reply

Originally posted by @Brandon T. :
Originally posted by @Tyler Gibson:
Originally posted by @Brandon T.:
Originally posted by @Zachary R Sink:

Hello Brandon,

I live in VA. I've been looking for properties in Florida. Mainly in the Orlando and Tampa area. Multi-family properties have exploded in price. There are few areas around Orlando where the prices are relatively low compared to the Tampa market. I think most of those properties are going to be in the 200-300 range. I see you mentioned a using an FHA loan. I think it would be tough to get a fha loan on a fixer. Have you looked at conventional loans. If you plan on living in the property you can get a loan with 5-10% down. Try to find a wholesaler in Florida to see you can find some better deals.

Hey Zachary! Thanks for the reply, I was under the impression that conventional loans had the same property requirements as FHA so that's really helpful as well as your tip on looking for a wholesaler, I appreciate it.

If you want to try to buy a fixer, I suggest using an FHA 203k loan. This is a renovation loan where the property doesn't even need to be habitable at the time of purchase. With an FHA 203k loan you can borrow up to 110% of the after repair value. This would require three and a half percent down but it would fund the renovations of the property. This kind of deal is not simple and not for the faint of heart so consider it with a grain of salt.

Hey Tyler! I'm aware of the 203k loan, isn't it true that you have to hire contractors to do the work for you? I've done flooring, cabinets, tile surrounds, drywall, paint, etc. so I'd like to use my own labor to save on the reno cost if possible. If there was a way I could do a 203k and do most of the work myself that would be ideal but as far as I know I would have to hire everything out. Thanks for your reply

It is true that you have to work with a 203K contractor. They may even need to have sort of certification. I don't know that you would necessarily have to use specific trades people to actually do the work. The contractor would certainly have to pull the permits and manage the project. I had a client recently used a 203K FHA loan to acquire a triplex.

@Brandon T.

I'm a broker and property manager in the Daytona Beach area and there's definitely some deals in that price range here but they typically require some work. If you're going the FHA route you may want to explore the 203k repair loan program they have. You'll want a lender with experience in this type of loan as I understand it can be a little tricky but if you're willing to put in the work then the payoff could be worth it for you in the equity you'll have after you finish your repairs and get the other side rented out. Best of luck!

Originally posted by @Brock Bolduc :

@Brandon T.

I'm a broker and property manager in the Daytona Beach area and there's definitely some deals in that price range here but they typically require some work. If you're going the FHA route you may want to explore the 203k repair loan program they have. You'll want a lender with experience in this type of loan as I understand it can be a little tricky but if you're willing to put in the work then the payoff could be worth it for you in the equity you'll have after you finish your repairs and get the other side rented out. Best of luck!

 Thanks for your reply Brock

Hi @Brandon T. ,
I helped multiple investors to purchase a multifamily property this year. Me and my investors review the listings as soon as they hit the market, we also negotiate lower prices on properties which have been overpriced and sit on the market for a while and we also pursue off market deals. With all the experienced gathered in that sphere I will have to confirm what was already mentioned above - You will have a hard time getting a MF under contract with an FHA loan. Your price point makes the task even more challenging. Unfortunately, the nature of this market favors cash offers and conventional loans. Your best bet is perhaps driving for dollars. Try to identify a list of properties which are not on the market and contact the sellers directly. I encourage you to provide great terms in order to compensate for the FHA loan. This is not easy to do but it is doable. I will be happy to share some info and tips. I am currently going through a similar process.

Promotion
Guaranteed Rate
Guaranteed Rate is a top mortgage lender
Save $1,290 on your next home – no lender fee*
Get special perks like $1,290 in lender fee savings when you buy a second home with Guaranteed Rate.
Apply Now