Tampa is one of the top 5 cities for house flipping, along with Memphis, Detroit, Ocala, and Miami, according to a 2015 Forbes article by Nav Athwal.
All 5 of these cities, according to Forbes, “are among the most active and rewarding markets for flippers. With plenty of distressed inventory, affordable entry points, and buyer demand, flippers in these cities are fixing and flipping for record profits.”
Florida Housing Market
Florida home values continue to increase from the 2007 housing crash. Forbes reported that home values had increased 7.5%, while demand continued to rise. With many Florida homes still at bargain prices, homebuyers and real estate investors are finding great buying opportunities.
Florida’s growing economy is partially responsible for fueling the state’s vibrant housing market, with rising employment rates, coupled with increased lending and purchasing activity. As a result, real estate investors have confidence to purchase and rehab homes they flip or convert into rental property.
Metro Tampa Flipping Volume and ROI
Metro Tampa, Forbes reports, ranked 4th for flipping volume and 6th for flipping returns according to a RealtyTrac article. Tampa flips accounted for 7.4% of all sales and delivered 57.2% ROI to investors.
This momentum has continued since the Forbes article in mid-2015:
- Cities in greater Tampa Bay ranked among the highest for average gross profit and ROI in a Q3 2015 RealtyTrac report.
- Tampa was tied for the 2nd highest share of flipping as a percentage of all single-family home sales for metro areas with at least 250 flips, according to a Q4 2015 RealtyTrac report.
Hot Market for Millennial Homebuyers
Besides a growing economy, metro Tampa Bay is also seeing a surge in millennial homebuyers, which is contributing to the city’s hot real estate market.
Tampa offers well-paying jobs, desirable amenities, area events, local beaches, and a quality of life that attracts millennials. As a result, 65% of Tampa home purchases in 2013-2014 were by a millennial homebuyer.
Future for Tampa Home Flippers
Tampa Bay has a long track record of being one of the best cities for real estate investing.
Continued economic growth and housing demands will positively affect real estate investors, providing opportunities to flip homes for a quick profit, or invest in rental properties to generate long-term cash flow and wealth.
Real estate investors seeking to flip homes and generate a ROI over 50% should continue to meet their goals, as well as investors seeking to flip a large number of homes each year.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay. We serve clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.