Flipping property (Cape Coral, Sarasota, Fort Myers: foreclosed, city hall, lease)

[justNancy]

Originally Posted by oldfart1947

LOL.........they just dropped it to $44,000

Might be worth a look for an investment. The only reason I knew about this house is I'm renting from a real estate agent with a listing in the same neighborhood for $89,000. ( Just noticed that one dropped to $75,000) She called me yesterday and noodged me to look at it, but I don't like the area. However, I might take another drive by if there's a house for $44,000 available. Easy Street is near the 2 hospitals, in the old section of Port Charlotte. There's a combination of retirees and rental properties. Lots of cars driving by with loud radios.

Still, if you rent out a newly renovated home, it sometimes needs to be renovated all over again after renters move out, so being a landlord has its drawbacks.

[hiknapster]

Originally Posted by justNancy

It also appeals to many rich people too.

I think because of all the posts on Cape Coral and the foreclosures, many out-of-towners reading the comments don't realize there are several luxury communities and million dollar homes on the Cape.

That's what I was trying to say. I wasn't knocking Cape Coral, but pointing out that it isn't a beachy bungalow type community.

I didn't say there are no rich people in Cape Coral. I said it appealed to people on a budget, especially regarding the homes he is referring to. The per capita income for the city was $26,758.

While there is currently 87 homes for sale on the cape, the majority go for much less and have a certain look. Also, the majority of those expensive homes are ostentatious monstrosities popular with the nouveau riche. It looks like a lot of folks are upside down, too, and in over their heads.

You and I know what kroeran is trying to accomplish but we also know who the majority of people are that like the typical Cape Coral home. They like they way it looks and it sells. That sort of look is beautiful and can be found on Sanibel. But the Sanibel buyer is not buying in Cape Coral.

[justNancy]

Originally Posted by hiknapster

While there is currently 87 homes for sale on the cape,

I think you meant to add a couple of zeros. Last time I looked at the MLS there were over 7,000 properties on the market in Cape Coral. Of course that includes condos, vacant lots and commercial buildings.

[stahltkd]

Originally Posted by junsai

I'm considering flipping. There is this area where just about every home has sold in the last few months. Whenever a new home or condo goes up someone buys it usually within 40 days of listing. There are only two houses there, one at a good price.

Good Luck

I don't know of any area in SWFL (Lee County in particular) that the whole area has an average 40 day turnaround or less... and I'm one of the most optimistic person about Lee County

[hiknapster]

Originally Posted by justNancy

I think you meant to add a couple of zeros. Last time I looked at the MLS there were over 7,000 properties on the market in Cape Coral. Of course that includes condos, vacant lots and commercial buildings.

Whoops! No zeroes to add. I meant to say there are 87 properties with a list price of $1M or more.

[kroeran]

sorry for being a dog with a bone on this...

for the porch, for sure don't use real wood (unless you are a scammer), and maybe just do it on the street side with a token bit of wrap around to get the effect - like in the north where we put a brick streetside and plastic siding for the rest of a house. This is a job the flipper could do as sweat equity.

for the roof, because you have an existing waterproof deck to work from, the flipper and a friend could put up the frame to hold the tin at a leisurely pace, I am imagining, of course to code, and I can't imagine installing the tin sheets to be rocket science. Again, with the existing deck and only being one story up, the flipper might be able to do this himself with a helper.

the basis of flipping in a flat market is to take something that is not at its best highest use and transform it in some way. My view is that some of these homes on water might have this potential, drawing on the aesthetic of Sanibel and Naples. Good design does not have to be expensive. The market is not local, the target is outsiders.

we see construction and renos done all the time that reflect the taste and eye of the renovator, who more often than not does not understand the market he is targeting.

[BigMunch]

I think you can make some good money, buy a couple houses at 50-60 grand each, put some cash down on them, move into the nicer one and fix up the other , then rent the fixed up one out at a lower rental price than most are paying in the area.
Make sure your Signs say the price so that the neighborhood knows you are renting the house for a really affordable price. If you rent to a hard working Hispanic family they will have lots of friends and family ready to rent out the second home when you finish that. It would be a good plan and you could have a positive cash flow. Keep it rolling and good luck

[hiknapster]

Originally Posted by kroeran

The market is not local, the target is outsiders.

Right. Do you know how many people in Cape Coral are from somewhere else? You don't understand that area and the market. You didn't know its size to you recently looked at a map. The area attracts a certain market. You can go after a new market, but be prepared to buy up a block, because people tend to like to buy homes so that when they are in their yard they are not turned off by looking at the surrounding homes. They don't want cookie-cutter, by any means, but they want their taste to surround them. If you are doing that kroeran, you are better off restoring some homes in the historic district.

[Compression]

Originally Posted by hiknapster

Right. Do you know how many people in Cape Coral are from somewhere else? You don't understand that area and the market. You didn't know its size to you recently looked at a map. The area attracts a certain market. You can go after a new market, but be prepared to buy up a block, because people tend to like to buy homes so that when they are in their yard they are not turned off by looking at the surrounding homes. They don't want cookie-cutter, by any means, but they want their taste to surround them. If you are doing that kroeran, you are better off restoring some homes in the historic district.

Amen.

YC.......

[kroeran]

yes, buying up a block, if possible, is a good idea