Florida is the fourth most viable state in the country, so the abundance of fix and flip possibilities is unsurprising. Flipping houses in Florida is a viable option that could lead to lucrative returns. Property rehabbing is an excellent way to succeed in the housing market, and some cities may be ideal for your needs if you’re looking to fix up and resell properties.
However, when it comes to choosing between top markets for flipping houses in Florida, knowledge of local real estate markets can come in handy.
Compared to Orlando’s $128 average ROI per square foot, Fort Myers’ $170 average ROI per square foot! In addition to first-time homebuyers, international firms who want to cash in on their American investments can benefit from refurbishing these properties.
Here are the top markets for fix and flip investors in Florida
Top Markets for Flipping Houses in Florida
1) Miami, Florida
South Florida’s housing market is predicted to be strong in 2021. Home prices are rising, while inventory levels are at low. It’s a buyer’s market right now, and many individuals are getting top dollar for their properties. After being impacted hard by the pandemic, the housing markets in Miami and South Florida began to recover in July 2020. The demand for South Florida real estate has increased since then. The Miami housing market has increased in 2021, thanks to pent-up demand and low mortgage rates.
Miami takes the top spot on our list of the top trending fix and flip cities in Florida, thanks to its international reputation for nightlife, entertainment, and Hollywood screen time. Flips account for 25.6 percent of all real estate transactions in Miami. The market is ideal for fix and flip deals because there are so many foreclosures to choose from. Miami’s weather and numerous entertainment options continue to make it a desirable place to live. With so many possible future investment properties and a steady influx of new residents, Miami’s real estate market appears to be in good shape.
- $284,249 is the median price of a home.
- The cost per square foot is $188.
- Monthly Price to Rent Ratio: 14 $1,721 in traditional rental income
- 4.14 percent traditional cash-on-cash return
2) Key West, Florida
We couldn’t possibly begin this list without mentioning Florida. Orlando, Jacksonville, and Tampa are just a few of the places in the state that are well-known for their high real estate investment returns.
Not only is Key West a renowned holiday destination, but it’s also a popular real estate market on the East Coast, with many people choosing to call it home. The city also has a stable economy, with tourism as its primary business and a 2.7 percent unemployment rate. According to our research, in the Key West real estate market, both traditional and Airbnb rental units are profitable.
- $901,964 is the average price of a home.
- $709.40 per square foot
- $4,016 in traditional rental income
- Rental income from Airbnb: $8,470
- 3.61 percent traditional cash-on-cash return
- Airbnb’s cash-on-cash return is 7%.
- 74.75 percent of Airbnb listings are occupied.
3) Tampa
Perhaps Florida’s most vibrant city, Tampa, offers investors a wide range of options and opportunities. The local economy is worth more than $130 billion per year, and it is also one of the fastest-growing cities in the United States, thanks to a strong focus on job creation and development.
There are a number of reasons why investing in Tampa is a good idea. Consider the following scenario:
- There are four Fortune 500 firms based there.
- Tampa still has a thriving tourism industry.
- With over 4 million population, Tampa is a diverse city.
- There are numerous renting options available.
In0vestors may discover magnificent properties for great prices in Tampa, and research suggests that they can rent them out fast for between $1,075 and $1,400, which is substantially above the national norm.
4) Orlando
Orlando, Florida is one of our favorite picks for the real estate rental market. Because of the high quality of life and job prospects, people and businesses are flocking to the greater Orlando area. Renters occupy 46 percent of housing units in Orlando. This is a sizable portion of the renter population, which appeals to real estate investors.
There are numerous reasons why it is so popular.
- The climate is fantastic because it is located in Florida’s “Sun Belt Region.” Beautiful beaches may be found in Orlando.
- It is home to world-famous amusement parks including Disney World and Universal Studios.
- The cost of living in the neighborhood is reasonable.
In the second quarter of 2019, house prices increased by 3.3 percent year over year.
Orlando has a population of about 2.5 million people and a thriving tourism industry with young people and students. This makes it an excellent community in which to raise a family or find possible tenants for your rental property.
5) Jacksonville
Even though Jacksonville’s housing market continues to grow, it’s still one of the most popular places for people to buy a home. Compared to other cities in Florida, the price of housing here is higher due to a lack of supply and high demand. The median home price in Jacksonville is $150,000, which is lower than the average for the other cities on our list. If you’re selling your home, this is good news because it means you’ll be getting better deal for it.
It’s also a relatively safe place to live, with only a few natural disasters to worry about. The fact that there are over 300 educational establishments in the city is an asset. In order to send their children to the best schools, parents tend to settle in neighborhoods near those schools.
6) Fort Myers
Fort Myers, Florida has a population size of 1.4x the Florida median, with 9,196 per sq miles.
In comparison to Miami flippers, Florida flippers can anticipate 17% less profit in pre-financing costs over the course of a mortgage.. Homes in Fort Myers are also less expensive than those in Miami, and estates are on average $10,000 less expensive than those in Orlando.
In Fort Myers, Florida, there are all under 26,000 mortgage holders, with a median investment debt of $97338 per borrower. The median closing costs in this area are $3200, and 38 percent of flippers will be responsible for their own funding costs. In comparison to other Florida cities, slower home loan payoff rates mean that flippers in Fort Myers will pay fewer taxes over the course of their investment.
7) Vero Beach
Growing population, increasing house prices and property appreciation rate all make Vero Beach a great region to invest in when planning a fix and flip. The city is already witnessing an increase in the number of flips being executed and a wide range of investors, from novice to experienced ones are already participating in flipping houses.
The median home value in Vero Beach is $232,247 and the home values are rising having gone up 3.4% over the last one year. The rising home value is another great reason for investors looking at flipping houses in Florida and profiting on their real estate investments in the state.
Why Should You Begin House Flipping in Florida?
Florida is an outstanding choice for investors in fix and flip properties a variety of reasons. One of the most important reasons is that our Florida hard money fix and flip programs are quick and simple, making it easier for you to get started with your loan application.
When we are talking about fix and flips, also identified as rehab and sells, property investors know that getting the right loan can mean the difference between getting a good deal and missing out. Traditional mortgage loans, such as, are usually a poor decision for fix and flips because banks have a lengthy vetting procedures and tend to avoid complex renovation projects. Although private money lenders are a better option, they can be unreliable and lack the stability of a larger financial institution. For fix and flips, hard money loans from a renowned organization could be the best choice.
We can help a broad range of borrowers complete the ideal fix and flip project with no financial delays thanks to our flexible underwriting and quick draw turnaround. Our company has earned a reputation for having the security and dependability of a commercial bank, and our customized loans are similar to a private money lender’s simplified process. Hard money loans from Asset Based Lending should be used to finance your fix and flip project.
Contact us today, 14th Street Capital, an experienced hard money lender, can an help you secure a hard money land loan. Fast, hassle-free hard money loans with customizable terms and very little documentation are available for the fix and flip investors.