Strong Areas for Flipping

[Annie Johnson]

Hi Everyone. 

I hope everyone is having a great Tuesday. I wanted to ask where people have been having the best luck lately with flips in the area from Miami up to Port Saint Lucie. I am thinking about Pompano or Port Saint Lucie as a starting point but wanted to get some advice from fellow investors. 

Thanks for your help!

[Marty Boardman]

I'm in Arizona so I can't comment on what the best areas are to fix and flip in Florida. But all that matters is MARGIN. If you can make the numbers work then it doesn't matter where the property is located. 

Earlier this year I fixed and flipped a house in the middle of nowhere Wisconsin (about 1.5 hours north of Green Bay). I had to hire crews from there and put them up in a nearby hotel to do the rehab. I also paid for all their meals/cocktails. After the extra travel costs and material delivery I still net a 75K profit. You can bake all these numbers into your offer price (this includes depreciation and extra holding costs, 3-2-1 buy downs, etc). 

There is NEVER a wrong time to fix and flip houses, only a WRONG way. Regardless of what is going on in the economy, if you overestimate the value of the property when the rehab is complete AND blow your budget you will lose money.

ALL that matters is margin. If there is enough spread going into the deal, you will make a profit.