Flipping property (Cape Coral, Port Charlotte, Naples: foreclosures, renters, insurance)

[timothy425]

Anyone out there flipping property. Any money to be made?
Tim

[stahltkd]

I haven't but from seeing the numbers of houses on the market plus guestimating the additional upcoming foreclosures - I would venture to guess slim to no money will be made. I can possibly see buying property and renting it and then when the market stabilizes or actually starts progressing then sell.

Our house was bought for 285k during the peak. We came in and bought for 101k last year. I don't know how much we've put into it - I know all the vanities were pulled, we still need to do deck repair, lawn work (they pulled about 6 trees in the backyard), there was pool pump that was taken... etc etc...

Based off of Trulia our house "zestimate" is 125k. So, there would be no profit for us. Everyone who's buying is looking for the deal... why buy your house at a higher price when I can go next door and fix it up to the way I want it for cheaper.

[hiknapster]

Originally Posted by stahltkd

I haven't but from seeing the numbers of houses on the market plus guestimating the additional upcoming foreclosures - I would venture to guess slim to no money will be made. I can possibly see buying property and renting it and then when the market stabilizes or actually starts progressing then sell.

Our house was bought for 285k during the peak. We came in and bought for 101k last year. I don't know how much we've put into it - I know all the vanities were pulled, we still need to do deck repair, lawn work (they pulled about 6 trees in the backyard), there was pool pump that was taken... etc etc...

Based off of Trulia our house "zestimate" is 125k. So, there would be no profit for us. Everyone who's buying is looking for the deal... why buy your house at a higher price when I can go next door and fix it up to the way I want it for cheaper.

Easier said than done. The area is flooded with rentals. And if you get it rented - big "if" - pray that they are decent tenants and will actually pay and not destroy the place. Being a landlord from afar is tough. It is usually left to slumlords or you need a management company to handle everything. Even then, they usually won't randomly stop by and check on your property. Meanwhile, you could have 10 people in there and the electricity is shut off, the mold is growing, and they are slowly selling the appliances, copper and metal.

Oh, and don't forget to pay the taxes and insurance.

There is a sweet spot to buy, but I don't think it is now. There have been some people on here claiming they are making money but when I check what they are saying I find it is not true.

[kroeran]

I am wondering if the numbers would work for taking a crappy looking bungaloes on a CC canals, put a peaked metal rook on them and wrap around porch (to crackerize it), open up the walls and redo the bathroom and kitchens, put in some landscaping and then resell (or rent for a year so that the gain is capital and not straight income...if your taxes work that way).

[justNancy]

Kroeran, you can't just buy a house and do what you want with it! If I'm wrong, someone correct me, but you need to get permits for repairs like a new roof or an addition like a porch. If you buy a house that's very outdated, you might have to update the wiring, plumbing, etc. Take a look at some of the comments on a thread I started. I saw a brand new 2010 house and asked if anyone had a chart to compare the value of new construction to an older home that had been renovated. The new house I saw had a stem wall, impact resistant windows, etc.

[URL]//www.city-data.com/forum/sarasota-bradenton-venice-area/1083460-estimated-cost-per-square-foot.html[/URL]

I also don't know where you're seeing those cheap "crappy looking bungalows" on canals. I've seen a lot of run down homes that haven't been updated since the 1970s and they're not as cheap as you think.

[justNancy]

Originally Posted by timothy425

Anyone out there flipping property. Any money to be made?
Tim

I think a lot depends on the time you have to fix up a house. I was going to do it, but I can't even lift a gallon of water without pulling a muscle. I did the math and it didn't work for me, but a lot of people use cheap materials and cut corners to flip houses. Even for a house to live in, I found that fixer-uppers can be money pits.

I saw a pool home in a nice, quiet area of Port Charlotte at the beginning of the year. I didn't buy it but it sold for $51K (very small house, about 950 s.f.) It needed new everything. It now has been completely renovated with new tile, kitchen cabinets, etc., and it's back on the market. The listing price is $89K. So, the big question is "what did it cost the seller to make repairs?" and of course "what will he end up making after it finally sells and he deducts materials, labor and taxes?" I dunno! The listing is still active, so obviously nobody has made an acceptable offer.

I think if you're able to buy a foreclosure at a very low price and fix it up nicely, it's possible to make money quickly as long as you aren't too greedy. The people who are flipping houses and making a quit profit often buy low and sell low too. I mean, if you buy 5 houses a year and make a net profit of $15,000 each, you are making $75,000 a year buying & flipping. What I think a lot of people want to do is buy one house and make a huge profit. I'm just not sure that's too common in today's market. Back in 2002 I sold furniture to clients in Naples who bought houses for $250,000 and sold them the next year for $500,000. Sometimes they only decorated the homes with nice furnishings and window treatments, but we're not in Kansas any more, Dorothy.

[kroeran]

Originally Posted by justNancy

Kroeran, you can't just buy a house and do what you want with it! If I'm wrong, someone correct me, but you need to get permits for repairs like a new roof or an addition like a porch. If you buy a house that's very outdated, you might have to update the wiring, plumbing, etc. Take a look at some of the comments on a thread I started. I saw a brand new 2010 house and asked if anyone had a chart to compare the value of new construction to an older home that had been renovated. The new house I saw had a stem wall, impact resistant windows, etc.

//www.city-data.com/forum/saras...uare-foot.html

I also don't know where you're seeing those cheap "crappy looking bungalows" on canals. I've seen a lot of run down homes that haven't been updated since the 1970s and they're not as cheap as you think.

well, I didnt say anything about working without permits. I should have said cheap looking, but as well, for most out of towners, $200k is cheap for a house that you can dock at boat at.

restated, the look of many or most houses on the canals is out of sync with the georgeous and unique look and feel canal-side, or at least some of the glimpses I get when crossing a canal on a street.

just wondering how the numbers would work out for a new roof and porch, built as cheaply as legal, and if this would pay for itself on resale.

one thing I can say for sure, within 20 years, something will be done about it...those locations are too unique and valuable

[timothy425]

thanks for your responses. I would like to buy and fix up. Stage it . Put it back on the market and be happy to clear $10000 and go on to the next one. If it didnt sell I would just live in it.

[hiknapster]

Originally Posted by kroeran

one thing I can say for sure, within 20 years, something will be done about it...those locations are too unique and valuable

Those locations have been there for 55 years; since the Rosen brothers.

The one thing you are forgetting is your market. What doesn't appeal to you, or even to me, may be beautiful to someone else. I've said that all along about that area. It is unique and caters to a certain niche. It was like that before the boom and it is back to the same, again.

[Iamrita]

Originally Posted by timothy425

Anyone out there flipping property. Any money to be made?
Tim

Considering the economy in Cape Coral I believe the propects are bleak. Even if you bought in cheap and rented it until you could flip you would have to consider the (financial) worthiness of your renters and the possibility that they would leave your property in worse shape than they found it. Also, legalities of eviction (they could be living in your place and dissing the rent) mean you could take a hit. CC is beat. Look elsewhere.