South Florida Market: What's Working?

Question

Good Evening, BP!

I am looking for input as to what seems to be working well in the South Florida market currently.  Trying to avoid Miami-Dade so most interested in Broward and Palm Beach.

Does buy-and-hold seem to be the best opportunities?  Or fix and flip?  Any up-and-coming areas?

Richard Rodriguez · Answer

What is working well here? Everything and nothing. I know people doing 10 deals per month and 1 every 2 months. I only do 2 deals per month myself but my net profit is 53k per deal for the last two years. Humbly speaking, I think I'm more of a rarity though.

Buy and hold vs fix and flip? Many of the biggest wholesalers will tell you that 90% of their buyers are land lord investors and that the fix and flippers are extinct. Some of my friends that only rehab do 2-3 deals per month and doing 500k per year in profit. Most of my buyers too are buy and hold but keep in mind as @Brian Garrett he said it's a flippers market. In Palm Beach that may be the case but that comment is odd to me. That's amazing as I don't see that at all. I'm a wholesaler that specializes in hunting for deals and when I mean deals, I mean steals at 30 cents on the dollar not these "garbage-near-ARV-deals". There are tons of wholesalers out here that that put out so much junk weekly but they are surely moving it as I track the properties they are pushing. There not putting out those properties every month for years without making money. There are so many buyers down here, it's incredible how vast the buying criteria is from buyer to buyer.

If you want to know what works, trust me, it ALL works. You need to become a specialist in ONE area and work it like your life depends on it. Then you'll see it works. Trust me, I'm talking from experience. Hope this helps............

David Collier Jr · Answer

Been aggressively analyzing multi-families on and off market in Broward for a few months now. Finally got one under contract in a great up and coming location for a price that makes sense but made a full price offer site unseen within the first 30 mins of it coming to market to get it under contract.

Using what I've learned and applied here on BP allowed me to recognize immediately that the deal made sense. I find nothing can be accomplished with hesitation down here in S FL. Act fast and figure out later but only at a price that makes sense.

For what it's worth I have a client (insurance) that has bought 4 SFR's in Riviera Beach this past year for buy and hold. All properties needed minor work but are now rented and cash flow nicely. Further north is where I'll be looking for the next one. Hope that helps.

Charlie DiLisio · Answer

hmmm not buying your narrative Richard.  A wholesaler making 50k on every deal and you are doing 2 a month for the last two years.  Sellers market here in south Florida not good for buyers in my opinion.  Good luck to everyone.

Kishia Ward · Answer

Hey!

I'm new to Biggerpockets and I am an Investor from WPB. I'm currently looking in to wholesaling in Atlanta and WPB. I purchased my first property in 2011 in PBC. The prices have since doubled in the area.

Unless you can find a great deal on a home to rehab and hold,  ) it's best to fix and flip - especially with the continuous increase in prices almost monthly.

Seasonal rentals are also pretty common in PBC. If you are interested in seasonal, plan to find property near major attractions (Polo, Beach, Golf, Ball park, etc). The  athletes and their familys are willing to pay top dollar for seasonal rents.

Hope that helps! :)

Richard Rodriguez · Answer

@Charlie DiLisio, I totally understand your question of me getting these deals at such an incredible spread. I didn't believe it either until I found the few "ninja's" that are out here. Matter of fact there are 2 others in my farm area that have the same spreads. I'm selling a property to a buyer where I'm making 54k on the deal and I'm pissed because I think I undersold it. We are pending the closing. Would you believe that he bought and sold a deal where he wholesaled it to make a 73k spread hit and it's 2 blocks away from the deal I'm selling him?! I'm pissed because I have 1 more bedroom than he has. I knew I undersold it! Nothing in the neighborhood has sold near his price so I'm thinking he sold it to someone  inexperienced or he just pushed this sale at that price. Could be.

I wouldn't believe me either my friend but I wish I could tell you some of the savvy things that I know. You would slap yourself silly. I can tell you this, I will go toe to toe with anyone in this forum when it comes to drive and work ethic! You wouldn't believe the backsides of people I kissed, the constant digging into public records, the schmoozing, studying, reading, watching video after video, and just a shear relentless desire to be the BEST OF THE BEST! That's me and I'm no where near done! I'm going to work until I make people pass out even if it's myself that is the one passing out! I HATE competition and LOVE to WIN! There is NO WAY I'm coming in 2nd and you can that to the bank!!!!

Remember this, you don't know what you don't know. The more I learn the more I realize I don't know anything. There are people KILLING my numbers out there that I know this for a fact! It's just a matter of time because I'm on there tracks like a Florida gator! ;)

See you at the top.................hopefully! ;)

Brian Garrett · Answer

It's definitely more of a flippers market here than a buy and hold market.

Price to rent ratios are horrible for cash flow at least in Palm Beach County.

Mitchell Jaworski · Answer

I've started looking out of state, not sure if that's helpful.  I know people finding deals in Broward, but you have to hustle.  They are generally non-hoa communities and homes that need updating, may be the sweet-spot.

Mitchell Jaworski · Answer

Account Closed- ain't that the truth!  Love that you are cognizant enough to use your employer as a gauge for when it's time to get out of dodge!   You lend in FL only, correct?

Account Closed · Answer

I say use other people's money to make money.  Put as little as 15% down on rental property with closing costs paid.

Always keep good renters in the properties over the next 7 to 10 yrs. and maximize appreciation and tax write off savings.

Then, when you see my company advertising the below...

• 620 score- 100%- 80/20  I/O 1st mtg - One day out of BK
• 680 score- 100%- 80/20  1.5% pymt Neg AM, Hybrid Option Arm 1st mtg- NO DOC

...we're headed over the cliff again, so SELL, SELL, SELL!   ha!

Michael Reger · Answer

hopefully your right on!

South Florida Market: What's Working?

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