Hello, everyone. I've been living in the area for about 8 years now and I'd like to get into real estate investing soon. I really like the idea of rentals and the passive income but also think flipping could be a great way to raise some capital and, if successful, possibly turn it into a full-time gig and leave my 9-5 job. Ideally, I would like to do both.
My question for you guys is what do you think of the local market in terms of flipping vs. renting? I have a realtor in St. Pete who says I can do very well flipping over there right now, but I've also been cautioned against investing in St. Pete (by a member here) that their permitting can be extremely slow and troublesome so I should stay clear of the area.
Does anyone have any advice or guidance for me? Is flipping worthwhile here? Should I avoid St. Pete?
I look forward to learning from everyone here!
Thanks in advance,
I would go and talk to that realtor that you know and learn as much as you possibly can about what they are doing. I'd then see if you get involved in some of their projects or just try to do some projects on your own with their crew and using him to buy and sell your flips. You can also analyze these projects as rental properties, I know that that market is good for rentals as well. Permitting is slow no matter where you are. There is no city that has fast permitting. So as long as you know that it might take a little bit longer just put that into account when you are analyzing your deal.
Thanks for the advice, Antoine. I'm going to go out next weekend with her and see a few properties in person and get a better feel for the area.
It sounds like the best move would be to get some more education on each strategy before making any decisions.
For example, if you want to go the rental property route, you need to understand cash flow numbers. If you do, you may quickly realize you can't get cash flow on your area (or maybe you can, I don't actually know, but typically FL cities don't cash flow). For flipping, do you know how to flip? (and I mean how to do it successfully) If you do, you don't have to rely on agents to tell you if something can work or not.
Rentals and flips are very different things, from the passive vs. active income standpoints, and risk and effort levels are drastically different. I'd get some more education under your belt before diving into anything.
It's hard to say right now and I think it depends on the opportunity that presents itself.
A lot of prices are so damn frothy right now that from a cash flow perspective, you're getting a much smaller ROI for your investment than if the prices were more reasonably priced.
And if you're doing the flip, will you be adding value to the house? Or just sitting on it for a year and hoping the market goes up?
Thanks for the reply, Gregory. I would definitely be looking to find a house where I could add value by rehabbing it. If I'm going to go the flip route I'd like to turn it over as quickly as possible.
Mason, while permitting and code enforcement in St Pete proper are definitely challenging, you can still do well down there with the right deal. I would, however, recommend staying on your side of the bay for your first few so you can stay close and learn as much as possible. There is a lot of opportunity in eastern Hillsborough and in tampa. Let me know if I can help in some way.
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