I am an inspector in Florida. I’m looking to research and possibly get into flipping houses in this area. I’m not asking for anyone to spill the secrets but just wondering if any of you guys have done this and would be wiling to give any good advice or places to start with regards to getting into this. Thanks guys!
I flip houses in Iowa
have your financing ready before you start, you need to know what you can afford, and how soon you can have the money together.
Definitely shop around for contractors and have a complete scope of work laid out for them that they are to follow.
The major con themselves are the flipping houses TV shows. It is not what it seems. These are actors, into making money from the TV shows, not the homes.
The only way to make any money flipping homes is to have your own crew. Using sub-contractors will cause money to fly out of your pocket, delays, and many headaches.
Use Cash and do not borrow money to do it.
Sound advice.
Ed I’m currently doing one now and it will be my last the way I have been doing them. Lessons I’ve learned:
- We’re doing sometimes 20 inspections a week. Flipping a house cannot be a part time job. It’s almost full time
- Don’t do the work yourself. Mistake I’m making now as I am in month 4 of what was supposed to be a 30 day job. Next one I do will have a project manager who will run subs.
- Watch your comps judiciously. If it’s not in the same neighborhood, throw it out. You know as well as I, in the Tampa bay area, a few blocks away you could be in the hood or a rich area.
- Banks are overpricing. You either need to go after stuff thats sat a tremendously long time, outbid the banks on the courthouse steps, or know a wholesaler.
- Ignore the advice about borrowing money, but don’t borrow from a bank. Hard money lenders will get you to the closing table in around 10 days with only an appraisal. The more you pony up, the easier it is to use them. You’ll pay their fees, but if you don’t have the capital, its a nice way to roll.
- Ikea cabinets, bathroom vanities, and faucets will be your friend price wise. You can get a whole kitchen array for around $3 grand (all assembly required).
- Stay as much away from framing/drywall tear out as possible. Best house you can get is one that is already open floor plan and only needs updates. Framing/drywall will involve electric, framing, just a mess of building inspections that slow you down to a grinding speed, and you almost never pass your first rough in, at least I hardly ever have.
Good luck
Really great advice guys thanks so much. Gfricke I sent you a message, thanks.
The only way to truly learn is the hard way. I do them in Indiana and my goal now is to get one towards thanksgiving time to do a lot of the work while no one is buying houses. We get about 5-6 weeks between thanksgiving and end of January where business drops way off. I dont know that I really “make a profit” more than I get paid for my time doing the work. Its tough to find the right property. I get inspections all the time where I see a house I would have bought but finding it before someone buys it is difficult process
Much agreed
I made a lot of money flipping houses, until 2006.
That’s when I “flipped” a house in North Florida and it cost me $135,000.
Don’t invest at the top of the bubble…
Hard to tell when you’re at the top until you’ve passed it.
I bought my house a week or 2 after huricane charley hit. They still want my house to appraise for 40k more than I paid for it before the bubble started to refinance it. Crazy…
-Carl