You’ve heard the old adage: location, location, location. There’s no truer statement when it comes to real estate investment, and specifically fixing and flipping properties. Savvy investors spend countless hours researching the markets that will meet their needs, and rightfully so.
If you’ve been considering the Miami-Dade area, you’re on the right track! Here are just a few of the reasons why the Miami-Dade area appeals to flippers.
#1. Distressed Properties Continue to Hit the Market
Although fewer properties are entering the foreclosure process today, South Florida’s backlog of foreclosure properties was so great, it’s taken years for them to make their way to the market —and they’re still coming. Additionally, lenders and hedge funds that purchased these properties fast and furiously a few years ago are now starting to unload their portfolios. This means great deals are still available to investors in the Miami-Dade market.
#2. The Profits Are Greater
According to a recent report by real estate research firm RealtyTrac, the gross profit for a flipped home (defined as a property sold twice within 12 months) in Palm Beach, Broward and Miami-Dade counties in the first quarter of 2016 was $65,000 —up from $54,500 a few years ago. The return on investment was 51 percent, compared with 46 percent in the first quarter of 2015. This is a positive sign for investors considering this market.
#3. Prices are Still Below Their Peak
One of the ways that investors can vet potential cities for their next fix and flip is by comparing the peak and current market conditions to determine if there’s enough room to buy the property, fix it, and flip it for a profit. According to Zillow, the median price in Miami peaked in 2007 at roughly $370,000. It’s currently $280,000 —and that’s coming of a year where median prices rose about 3.9 percent. This is a good indication that investors can find good value-add opportunities.
#4. It’s Attractive
Miami-Dade is one of the great areas of our country, and flippers agree. In fact, the Miami metro area had the most homes flipped of any market nationwide —with 10,658 homes flipped in 2015. That represented roughly 8.6 percent of all property sales. This trend is poised to continue as more and more distressed properties exit the foreclosure process.
Want to learn more about the Miami-Dade flipping market? Connect with one of our team members today. And, don't forget to explore our site for available deals in this hot market.
