According to a recent report from WalletHub, the city of Tampa ranks #10, out of 169 other cities in the United States, for wholesale real estate investing. Tampa Bay has undergone some astonishing changes in the past couple of years. In January of 2010, Tampa’s unemployment rate was at an appalling 11.7%. In 2011, Tampa’s GDP per capita, which is a measure of the worth of all goods and services produced, minus the value of goods and services used up in production, was at $38,863. In September of 2013, the median sale price of all properties was $177,500. On the contrary, in 2018: The unemployment rate, as of June, is 3.8%, the projected GDP per capita is $42,047, and the median sale price of all properties is remaining at $239,000. Home values have risen 15.3% in the past year and are anticipated to increase another 7.9%. Older neighborhoods such as Seminole Heights, and properties downtown, especially near Channel Side, are being revitalized and invested in. Since the Tampa Bay Rays announced the potential construction of a brand new ballpark in the Ybor City area, investors have been scrambling to snag properties in the 33605 area code. With all projections pointing upwards, the time to flip is yesterday.
Flipping homes may seem like a simple endeavor, you purchase an old, outdated property, make a few renovations, sell it, and make an enormous profit. Unfortunately, wholesale real estate investing is not as easy as depicted on popular TV shows such as Property Brothers, and in fact, requires more time and money than most people realize. If one is looking to do some flipping in Tampa, there are a few important points to remember. Most professional flippers will stress the importance of expedience. You want to buy and sell a property as fast as possible due to the property maintenance costs, mortgage, and potential property holding costs which may reduce final profits margins. Another major aspect is financing. If you are financing the property renovation and must borrow money, you will have to pay interest which is not 100% tax deductible. It is essential that you find a mortgage lender who offers low-interest rates. You can pay for everything with cash, but you will still be subject to the capital gains tax. When flipping a home, you must understand the amount of time involved. You must invest the time in buying, renovating, ensuring the property is up to code and selling the property.
If you are seeking to flip a home on top of your normal occupational work, you may find it extremely difficult or impossible to accumulate the time required. Inexperienced flippers also find themselves lacking the skills and knowledge demanded in flipping a property. If you have to pay out of pocket for the professional renovation and resale of a property, you will find your profit margins to be extremely slim. In summation, wholesale real-estate investing should not be taken on unless you have done all the necessary research and due diligence. With that being said, the profit potential in Tampa has never been higher. Three years ago a 3 bedroom, one bathroom bungalow in a Ybor neighborhood sold for $25,000 in a foreclosure sale, and today the property will most likely close at $164,900. Like all investments, there are risks involved, but right now, Tampa is a risk worth taking.
Sapphire Title & Escrow Company 