Looking to flip in Florida, how do I recognize the right city ?

Question

Hi everyone....A group of investors looking to start investing in Florida yet not sure how to recognize the best market for flipping purposes.From what we get to see, read and hear Florida is one of the best places to invest these days yet we fail to solve the question whether its good for buy and hold / flipping / both.Any insights concerning how to choose the best region for house flipping will be highly appreciated :)Thanks,Shachar.

Shachar Hess · Answer

Thanks!!! @Elise Hazzard

Elise Hazzard · Answer

Sorry- here in FL the 55+ properties are everywhere; I should have clarified. Intended to be age restriction for ownership only for those over 55. This is not considered discriminatory , it is how the community documents are set up with state oversight.  Usually intended for people who want to ensure a quieter existence.  However, many agents do not post in their advertising that there are age restrictions. Something to know BEFORE creating a contract for sure.

Just saw a video of young couple who bought SFH in North fL; principle and interest was 460 or 560 / mo ; so that was affordable but then because they were financing the property there was additional unexpected 100. / mo flood insurance.  So the concern is, if someone can qualify for the 200K+ property (ARV) can they also afford the 200/ mo  mandatory flood insurance which is guaranteed to escalate..  FEMA is reassinging maps now so people who may not have previously been required to buy flood insurance will now be required to pay their lender who will purchase coverage, even if they never intended to buy it themselves.

The trickle down effect is that the pool of potential buyers who can afford or want to pay of for flood insurance may reduce the number of people you can attract when it's time to sell the flip.  You always want competition from a number of fish; not the only fish in the pond on the day you need a contract.

This is not a state with high wage earners like NY/ CA/ DC, so even one additional line item can affect profit.

Jack Bobeck · Answer

@Shachar Hess See you sometime soon!

Shachar Hess · Answer

Hi @Jack Bobeck,

Thanks for sharing the article, it sure strengthens some of the things I hear about Jacksonville.The thing is, I still dont manage to decide whether Jax is a good market for flipping as for buy and hold we know it is.

Our group is heading to the US every couple of months and I believe the next visit will be in Nov.I would love to further discuss Jax and its opportunities with you.Thanks,

Shachar Hess · Answer

Hi @Karen R.,

You sure gave me a lot of tools to explore here.Thanks !!!

Shachar Hess · Answer

Hi @Elise Hazzard,

Can you please clarify what do you mean by "55+ properties"? are you referring to the property age?

Also you have mentioned all kinds of restrictions and set backs such as hurricanes and so... since we are talking about flipping and not buy and hold, do you still think those will have the same significance?

Thanks for helping :)

Jack Bobeck · Answer

@Shachar Hess This article JUST came out this month, from Forbes on The Best Cities To Own Rental Property In Florida. I live in and invest in Jacksonville. Happy to help if you have questions about Jax. Our local unemployment is down to 3.5%, under the national average.

Karen R. · Answer

Shachar..

I suggest you start with MyFlorida.com which is a state run website. From there you can learn about the various counties in Florida. Each county also has it's own website which offers more "local" information, and of course I would check out the Chamber of Commerce for each city/town or county. And then I would just do an internet search on an area you are interested in; for example Tampa. Many various sites would come up showing you that Tampa has a great night life area and St. Petersburg (just across the bridge) has great waterfront activities. It just depends on what you are looking for. Hope this helps.

Elise Hazzard · Answer

Hello,  we used to invest in FL,  my only suggestion is to stay way from 55+ properties.Many cities/regions specialize in retirement communities.  Way too many restrictions on owning / leasing and lots of added fees.

Unfortunately hurricane's are also a problem. We have  had properties all over the state and the preparations and damages are a pain.  Tenants don't want to deploy property protection and so I always get loss of use coverage so what repairs are needed you can recoup some the lost rents.

I've heard people like the panhandle but I'm not familiar myself. I'll follow along to hear other comments. :)