Flipper/Rehabber · Fort Lauderdale, FL · Member since 2014 · 2 posts · 0 votes
For 5 years I have been moderately successful in Fixing and Flipping SFRs. I have completed 14 Flips and averaged net 20% on average of $150K. investment. Love the business aspect of Rehabbing, staging and selling of the homes.
What I don't love is finding the properties. I have bought REOs, Short Sales and a standard MLS listing. I can't find the margins in the Marketplace anymore.
It has definately gotten A LOT more competitive and the inventory for REO's has gone down significantly as well. More buyers, fewer sellers has turned this into a sellers market and less meat on the bone for the average flipper like yourself.
Have you had any luck with wholesalers bringing off market properties? I live in Broward and the house directly next to me was just flipped. According to MLS purchase price was $263k and just put back on the market at $399k. The company is an LLC out of California. I believe they purchased the property through an auction.
I am looking and finding investment properties every day. It does get more and more difficult. I think the buy and hold strategy is better for this market. The best deals I find are in Multiplex properties.
South Florida, especially in Miami is an extremely competitive and dynamic market There are tons of opportunities for flips, you just have to be the first one in, be able to close quick, and sometimes assume the risk of a projected lower margin. Also,the barriers for entry are getting higher as property values across the entire city just keep rising and rising.
From what I have seen I agree with the poster it is hard to find a property to flip unless you get one from someone who wants out. REOs aren't good deals either considering the banks price them damn near the same price as regular owner occupied homes. And even if you find a good one on the MLS thats an REO at a killer deal....Guess what...They more than likely asking you to pay all the citations or HOA fees that are due on it lol. Saw one the other day it was 12k in citations and the bank wanted buyers to pay it. To that I will say No thank You
We have to make a couple hundred offers monthly to get to the deals that are listed on the MLS. We have someone in our office making offers and negotiating listed deals full time. Often times, we end up buying these properties for WELL below list.
Now off market is a different ballgame. With the kind of marketing thay we do, we're buying most of the deals that come our way.