Over the past several years, the concept of flipping houses has gained popularity, in part because of reality TV shows and in part because more and more people are falling in love with the idea of working hard, getting their hands filthy, and (assuming everything goes according to plan) making a tidy profit.
For investors wishing to profit from their enthusiasm for real estate, flipping homes is a terrific investment plan. Additionally, even while it might be a difficult procedure, it can also be incredibly rewarding and produce significant profit margins.
West Palm beach is a great place to seek for a market to fix up and resell. Make sure you are fully aware of what you are getting into before jumping in headfirst.
Why Is Flipping Houses in West Palm Beach a Lucrative Deal?
Real estate investment opportunities abound in West Palm. West Palm is a wonderful area to expand your real estate portfolio for the following reasons:
Rapid population growth – By 2023, Florida’s population is expected to increase by about 11%, according to analysts. More population means a greater need for housing in the different parts of Florida!
There are numerous foreclosed homes for sale – The second-highest percentage of foreclosed homes in the nation are located in the Sunshine State. So there’s always a chance to buy a fixer-upper at a reasonable price.
Low taxes – The state’s taxation rates place it 40th out of 52 states. While this does not assist in avoiding capital gains taxes, it does offer financial assistance to those seeking to move and develop a portfolio of real estate investments in West palm.
How to Start Flipping Houses in West Palm Beach, Florida?
Understand your market
Different real estate markets exist around the US. While Florida is a great market for executing a fix and flip, it’s possible that what’s going on in your local market is different from what’s happening throughout the nation.
- Are prices going up or down?
- What infrastructure and new facilities are being built?
- What about the neighborhood that will draw customers?
Does it make sense to keep and rent a home you purchase in the region till the price increases even more?
Know your numbers for the Florida property
Are you familiar with an ARV? This is the home’s value following any renovations and repairs. By researching the market and consulting a contractor who can provide an exact estimate of the cost to repair the home, you need to determine this amount.
The time it will take to finish the work and sell the house must also be taken into account. The costs of materials, labor, and other expenses will be your responsibility as the owner in addition to taxes, utilities, and a mortgage, if applicable.
Secure funding
When you have a specific home in mind, finance must be obtained. To help with this, 14th street Capital is making your way. Our private money loans are specifically designed for flipping houses, and you can typically finance your deals within a week of submitting your application. So, as a skilled private money lender, we advise getting in touch with us to start working on your fix and flip in the Sunshine State.
Know who your buyers are in West Palm Beach FL
What are the neighborhood’s demographics? Exist local families, retirees, outdoor enthusiasts, or students? What features will they be seeking in a house?
You should purchase a house with the features your target market is seeking for.
Focus on finishing the basement or building an open family room if there are lots of young families looking to buy in the neighborhood. Make the home accessible and the yard low-maintenance if you have retirees.
Have a plan for your exit
Prior to beginning the house-flipping process, you should know what your ultimate goal is. Do you intend to repair it and sell it in the next six months? Or are you hoping to use the BRRRR approach to make the property a passive income generator? Many decisions you make during the refurbishment process, as well as your own time schedule, will be influenced by your departure strategy. Determining an exit strategy as soon as possible is therefore recommended.
Flipping houses in West palm beach using hard money loan
Private lenders offer hard money loans, which are short-term loans. Hard money lenders provide loans secured by real estate, in which the asset being financed acts as collateral. Hard money lenders in West Palm Beach are the greatest alternative for a real estate investor looking to fund a property flip.
In order to calculate the profit margin on a flip, hard money lenders look at the after repair value (ARV). Thus, your funding will be determined by the ARV of your project. You can even acquire a loan for up to 100% of ARV if you have experience flipping homes and a track record of success in your portfolio. This will provide you access to the money you need for repairs and improvements.
Hard money loans have higher interest rates, but they also come with several benefits to make up for it. In addition to having liberal lending requirements, hard money lenders approve loans far more quickly than traditional lenders do. Being able to close quickly can give you the upper hand over other buyers as a real estate investor.
Best neighborhoods for flipping houses in West Palm beach
Flamingo Park
West Palm Beach’s Flamingo Park is known for its tree-lined walkways, a variety of cultural attractions, and shopping establishments.
Flamingo Park is very cheap for families since it has a typical household income of $46,279 and a median property value of $273,200.
Grandview Heights
Grandview Heights, one of West Palm Beach’s thirteen historical districts, is located in the city’s center and was constructed between 1910 and 1925. Grandview Heights, a community featuring a mix of largely single-family homes and contemporary townhomes, is well-liked by young professionals.
Grandview Heights has a higher median home value of $278,250 and a typical household income of $58,416 than the national average.
City Place
The New Urbanism development City Place, a lively urban community offering purchasers contemporary apartments, studio lofts, and condo towers, is situated in the center of downtown West Palm Beach.
Young professionals especially like this vibrant downtown district, where apartments typically cost around $255,000.
Lake Worth Beach
Lake Worth Beach, which is located about south of the city of West Palm Beach, gets its name from Lake Worth Lagoon, a body of water that runs along its eastern edge. Despite being less than the national average, Lake Worth Beach’s median household income of $35,428 is in line with the area’s $203,400 typical property price.
Conclusion
West Palm, Florida is practically designed for real estate investment, with a fast expanding population, affordable housing, and a wide variety of foreclosure properties accessible.
Nevertheless, remodeling and flipping are difficult tasks. While it may be tempting to do it alone, you should assemble a real estate dream team that is knowledgeable about the regional market. 14th Street Capital, a seasoned lender will help you in getting a hard money loan for non-owner occupied buildings.