You may be familiar with the idea of house flipping from TV shows like “Flip This House” or “Flip or Flop,” but what you might not know is just how popular house flipping is right here in Central Florida! Our neck of the woods was recently shown to be one of the top spots for house flipping—and among the highest in terms of return on investment for flips. In today’s blog, we’ll be looking at the ins and outs of house flipping, what role it plays here in Central Florida, and why it can mean great things for area homeowners.
Behind the flip
Flipping a house refers to the process of buying a home and reselling it quickly—all with the intention of making a profit. This can be done in one of two ways. In a quickly rising market, flippers can buy a house for a low price then resell it at a higher one. While this is a dream scenario for many hopeful flippers, it only works under specific conditions. The more universal way to flip—that is, the one that will work in most markets, most of the time—is the one you see on TV: finding a house that’s in need of work, putting in the necessary repairs, and selling it at its new value reflective of those changes.
Central Florida flipping on the rise
A recent RealtyTrac report shows that Central Florida markets are among the best in the country for flipping, both in terms of share of home flips and return on investment. Ocala came in second on RealtyTrac’s ranking of flip shares—that is, percentages of home sales that are flips—at eight percent. Port St. Lucie, Lakeland, and the Deltona-Daytona Beach-Ormond Beach market also made the list. That means that a growing percentage of area homes are flips—and a growing amount of potential flippers may soon find that they, too, can take on the task!
Central Florida cities also ranked high for return on investment, so if you do decide to try flipping a home for yourself, you can do so with the confidence that your money, time and efforts won’t go to waste… and that’s great news!
Should I flip?
With numbers like the ones we’re seeing in the RealtyTrac report, the idea of flipping a home can be tantalizing to Central Florida residents. And buying a home to flip can earn you a great profit! But while conditions are favorable for flips, you should still think carefully about taking on the task of flipping, as you would about any major financial decision.
First off, be safe with your investment. With the right planning and effort, your flipping project has a good chance of earning you the profit you crave—but there’s no guarantee. Don’t take on the job unless you’d be okay with having your freshly-flipped home be on the market for a while—now this isn’t necessarily likely, but you don’t want to risk it all.
Finally, don’t go into the flipping process alone. The house flipping shows may seem fun and informative enough, but they aren’t a substitute for industry expertise. Team up with a dedicated real estate advisor! Give me a call so I can help you to learn about the financial costs you’ll need to take on before turning a profit, and to know how the process works step by step.