Many of our readers probably remember how some degree of ire was directed at so-called “home flippers” during the depths of the housing crash and the early years of the slow recovery. Home flippers were viewed by some as get-rich-quick investors, buying a piece of property in foreclosure, making some small renovations and then turning around and selling the property for a quick profit. However, when it comes to real estate in South Florida, this type of investment and turnaround can actually be quite popular, if it is done right.
In fact, data for the South Florida market shows that the rate of real estate transactions for “flipped” homes in the local market is among the highest in America. Our readers who are familiar with previous posts here probably know why – the South Florida real estate market has seen one of the best comebacks among major metropolitan markets in the country. It makes sense that investors would target a healthy real estate market for flipping homes.
However, contrary to what some people might believe, in many cases the concept of flipping a home is now not such a get-rich-quick setup. The investors who are buying homes with the sole purpose of fixing it up and reselling it are actually, in most cases, putting in quite a bit of thought and time into what renovations and changes will be the most attractive to potential buyers. The investors want to maximize their profits of course, but many are also trying to make sure that the renovated home will raise value throughout the area as well.
Source: Sun Sentinel, “South Florida still active for home flippers,” Paul Owers, Dec. 9, 2016