Realtor in SWFL, Working With Investors and My Own Portfolio

[River West]

Hello Everyone,

I am a long time follower of the forums and listener to BP Podcasts, first time posting. I'm a Realtor based in Southwest Florida. The reason for me posting is, I have just acquired a few different groups of investors interested in various types of properties in Central and SWFL. I am also looking to begin my own RE investment career with SFR flips. I would like to make a career out of investing for myself and others, so I would like this discussion to be a placeholder for forming successful working relationships and idea exchange with other 'movers and shakers' throughout Florida. Below are the current property types that I typically work with at my firm. Any suggestions/tips about locating deals of this nature would be greatly appreciated, especially from those who have experience working in Florida. Don't be afraid to post questions of your own, I will provide any insight that I can on the topic as well. "Two heads are better than one."

1. Duplexes to Quadplexes (on or off the MLS, minor-medium rehab). These properties are in Central Florida or Southwest FL for there to be any interest (Gainesville, FL is an outlier we accept). Price max is $500,000, no minimum. These properties are either flipped or buy & hold income investments. 8%+ cap rate.

2. Single Family Residences located in Southwest FL solely for the intention of flips. Light to heavy rehab projects typically. Price max is $400,000, no minimum.

3. Multi-family apartment complexes. No minimum or maximum number of units, 5-200+. These are in Central or Southwest Florida. These opportunities boil down more to a Cap rate decision so we don't worry about price points (7%+ cap rate). 

4. Retail Centers/plazas located in Central and Southwest FL. Low vacancies preferred but not mandatory. Also a cap rate decision (7%+ cap rate).

5. Lastly, vacant land zoned to support large multi-family developments. Minimum of 10/units per acre zoning required. Minimum of 20 acres needed, no maximum as we possibly can negotiate a subdivision if it's too large for our use. These deals are often taking place anywhere from North Tampa down to Sarasota, and Orlando.

Let's Connect!

[Shawn K Hicks]

@River West If it's of use to you, here are my observations on the local Gainesville market. Quads in my area are currently being listed anywhere from 225k on up to 325k. Most actual comps are for quads in D+/C- areas and have closed typically between 180 and 225k depending on condition. Rents for most individual units I see range from 650 to 750 for 2 bed 1 to 2 bathrooms. Of note, some of these units will bring in up to 850 a month with section 8 tenants that qualify. The reason in my subjective opinion for the significantly higher list prices on quads priced 275 to 325k that are typically sitting on the market for months has to do with a lone comp where a buyer paid 285k cash in a neighborhood where the previous high comp was 215k. I notice the realtor on that transaction had both sides of the deal. Either the buyer was taken advantage of, or there is some kind of funny business where they inflated the sales price to have a higher comp and perhaps cash was then refunded back under the table. Once that comp hit however, everyone and their neighbor decided to try and list at that price or higher. The most recent actual quad sale however actually closed 10 days ago for 220k. The particular property had a newer roof, updated plumbing, and 2 of the 4 HVAC's had been replaced.

As to flip opportunities, again some of the best options are in the C/D neighborhoods. They are able to be purchased anywhere from 50 to 90k before renovations. Thereafter, most have great flip potential or long term rental potential. One of my top local investors shared with me he is done for the time being with our local A & B neighborhoods, as he ties up more capital, takes on more risk, and his actual profit margins are not any better than when he sticks to the C/D neighborhoods. If 12 to 24 months down the road however there is a market correction, a small wave of foreclosures associated with Covid fallout, etc, he at that time would entertain considering options in those higher priced areas.

Our market is flooded with whole salers. Some have more experience than others. I'd say right now 2 out of every 5 "deals" sent my way are having legitimate potential. 

I'd love to network with you.