If you’ve paid attention to real estate news over the last few years, you’re certain to have seen just how hot the Florida market has been. Coupled with the limited housing inventory after a hectic 2020 and first six months of 2021, Florida has become a hotbed for real estate investors – especially fix and flippers. With few pundits arguing that the market will cool down soon, let’s explore what the experts have to say about the market for Florida fix and flippers:
Fix It and Don’t Flip It?
As it turns out, you may not even need to fix your flip to make a profit. As one luxury buyer learned this past April, sometimes bad situations result in major profits. After having purchased the most expensive mansion sale of the year, the buyer discovered that he and his family could no longer make the move down to the Sunshine State – so he asked his real estate agent to relist the 19 million dollar property for sale again; for $23 million. Because of the ridiculously hot market, despite this flipper doing no fixing whatsoever, this short-term flip is an extreme example of just how investor-friendly the market is. Read more from CNBC here.
Despite the record-breaking statistics that have been produced throughout the lifetime of the COVID-19 pandemic, the Florida market is not cooling down. According to Tampa-area real estate agent Joseph Kipping, many houses are being purchased above their listing price and in cash. Being able to close deals with buyers, many of which are from out of state, in cash means you can feel your profit immediately. Kipping goes on to highlight how this hot market differs from the market which inevitably crashed in the 2000s – no one is lending on sub-prime mortgages. This market is hot because people are buying. See more about what has made and is keeping the Florida market hot here.
Florida’s Housing Market Boom Is In Full Swing
With the housing boom in full swing in Florida, other markets aren’t seeing such drastic growth; so why Florida? Hickman Homes operator Mike Hickman explains that the perfect storm in Florida has contributing factors dating back to the 2008 recession. Low property taxes, ample home sizes, and a naturally beautiful climate keep Florida interesting to buyers. Hickmans continues to explain that even in this incredible sellers market, homes in the interior of the state are still reasonably priced when compared to many other states’ median costs. This Bay9 News article seeks insight from Hickman, as well as another realtor and one recent Florida buyer to contribute to what is keeping the market hot in the Sunshine State.
While less Florida-specific, the falling cost of lumber is aiding investors in fix and flips. After a year of sharply increasing lumber futures and direct costs due to high demand and production shortages, the lumber bubble has finally burst. Having more reliably low costs will always increase your ROI after a flip – and, as this NPR article explains, lumber prices will continue to fall.
The Florida market was predicted to be hot before the market symptoms of COVID swept across the state. With listing prices skyrocketing still, getting the perfect deal on a property may look like a challenge to a fix and flip investor – EMCAP Lending is here to help. Our team of experts know the Florida market and look forward to helping your fix and flip succeed. To learn more about who EMCAP is and how we can help you, contact us today,