Flipping is heating up in Florida Markets
Flipping activity may prove to be the most optimal time for such a venture. Flipping is making a comeback in several Florida markets which saw high levels of flipping activity over the past year. Flipping activity has increased most in Miami, growing from 4.7% to 6.4% of all home sales. Other flipping hotspots in Florida include Daytona Beach, Jacksonville, Orlando, Tampa, and Cape Coral, which have also seen relatively large increases in flipping activity between 0.8 to 1.4 percentage points. This is a practice that some believe can find plenty of opportunities, though they are not entirely without risk.
Real Estate investors are finding bargains everywhere, particularly in formerly hot housing markets such as Florida. Areas undergoing urban renewal present good investment opportunities. The key is doing your research, knowing what you are buying, the market, and how the price compares to the neighborhood. By the same token, many flippers found themselves in trouble because they have not correctly allocated the amount of money it takes to finish a flip and market it. It is important to figure out how much money it is needed upfront and to be realistic about renovation costs and the hidden costs that may incur during the flipping process.
House flipping is a unique housing market metric for two reasons. First, it is a speculative undertaking where investors are betting on turning a profit, and has historically occurred at high rates just before a market peaks. Second, flipping usually entails removing a home from a particular price point in the market and moving it to a higher price point through improvement.
AFLG Investments-Real Estate, LLC focuses on serving the real estate and business transaction needs of residential and commercial real estate. We have an incredible team of experienced agents and support staff who are dedicated to helping you achieve your goals and making your real estate experience pleasurable. For information on our real estate property for sale in Valrico, Florida, please click here.