Planning Advice - I'm moving cities and have strategy questions

6 Replies | Tampa, Florida

Hey BP,

I'm from Chicago area and heading to Tampa area this year. I'm making the move because of quite a bit of reasons but to sum it up - it's really expensive in Chicago and I've never been a fan of the cold. I specialize in construction, design, and project management. I've been trying start flipping houses for about 4 months so far but haven't had any luck with my offers. My goal is to flip houses until I have enough capital to start the buy and hold game and then continue to flip houses to create my wealth foundation. I'll have about 20k in savings when I get to Tampa. What I'm asking here is some thoughts or opinions on which way to play once I move.

When I move, I'm closing in on two ways that I can go when I get to Tampa (considering living and business plans):

  1. Find a place to rent in Tampa for around $700/month - $1000/month, work my W-2 job, and get into the Tampa flip market to build capital. Then a year down the road I'd buy a nice multi-family to live in (or not).
  2. Buy a beat up multi-family (2-4 unit house hack) to live in and renovate, work my W-2 job, and then get into the flip market at a much later date since my savings would be dried up

I'm really just looking for some opinions here on what to do with a 'fresh start'. Maybe you like one and think I should go with it or maybe there's another solution I'm not considering. Just a broad sweeping discussion post.

Thanks everyone in advance!

@Ryan Johnston Network as hard as possible and do not make any of the assumptions on estimates on cost that you made in Chicago.  We made a huge mistake in cost estimates investing in a market only 2 hours away.  You want to get to know your new market as much as possible and since you don't have the home field advantage, I would go to local REIAs, use biggerpockets to make connections ahead of time, and I would also start contacting the wholesalers in the area as well.  It's highly likely you will find it frustrating being in a new market because a lot of things you have known forever, may not apply in your new market like how to lookup delingquent taxes, landlord laws, permits, building requirements, certificate of occupancy, and the list goes on.  If I had to do it again I would create a deal flow process of everything you do on your typical flip or rental to get it to the finished product, explain it to a complete novice to real estate that likes to ask questions, so you don't inadvertently miss things that you do on instinct and then verify every step is the same in your new market.  

@Ryan Johnston we run the largest reia (TBREIA.com) and can give you some guidance. There are opportunities to buy a duplex+ with FHA or VA if you are one and get into your first property although for it to qualify you're most likely paying retail in this market. That is fine of course if you'll live in it, either way a sweet deal. It is quite hard to be successful in this business if you are not full time or have some funds to deploy. PM me and we can chat some more.

@Jeremy Kloter Hey Jeremy, I've focused in more on my plan since this post. I'm going to flip houses when I get to Tampa, pay off my existing debt (the ever-haunting student loans) and then scale that business. As far as being in the business full-time, yes I recognize that it's much more efficient to be a full time investor (and believe me it's what I'm shooting for) but currently I don't think it's the best option for me right now. I'm confident in my ability to flip a house while working full time because of my experience and knowledge of design, construction, and general contracting. After I build my 'wealth foundation' with house flips, I plan on spreading from Tampa over to St. Pete and up through Clearwater. Then after I'm confident with my flipping business I'm going to head for long-term, large-scale apartment complexes.

I'll definitely check out the REIA when I make it to the south! I'm really excited about moving and I'm happy that you decided to reach out to me. When I get to Tampa I'd love to help volunteer some time to helping the REIA if you guys need it. Thanks again,

Ryan

Hi @Ryan Johnston

I moved from Miami to Tampa a year ago and it was the best thing I did. I was trying to find a multi family in Miami to house hack and i couldn't find anything that fit my criteria. 

Once I moved to Tampa, after about 6 months I was able to find exactly what I was looking for. 

Now I work with a wholesale brokerage and I'm loving it. Let me know if you have any questions. 

Originally posted by Account Closed:

Hi @Ryan Johnston

I moved from Miami to Tampa a year ago and it was the best thing I did. I was trying to find a multi family in Miami to house hack and i couldn't find anything that fit my criteria. 

Once I moved to Tampa, after about 6 months I was able to find exactly what I was looking for. 

Now I work with a wholesale brokerage and I'm loving it. Let me know if you have any questions. 

 Hey Maricruz, I'm happy you responded. What area of Tampa did you decide to invest in? I'm currently looking for places to live and a little direction would be really helpful. If I'm currently interested in flipping houses are there markets that are better for this within Tampa or near Tampa.