Miami investing or Yes or No?

Question

Hi Everyone.  I have been doing some homework and I would like to get into flipping homes.  I have money to invest at the moment, however I'm finding it so difficult to find a home that meets the standard numbers I should be looking for in a good flip.  I live in Miami, FL and there seems to be a lot of competition.  Currently looking on the MLS for REO homes but there is not much in my area.   I have also searched Craigslist for some deals but no luck there either.

I would also be interested in long term rental multi family homes but again there does not seem to be any availability in the area.  Would it be a smart move to buy my first long term rental out of state?

Does anyone have any advice for options on how to look for some deals in the area?

Thanks,

Karla

Bradley Sriro · Answer

Hello @Karla Castro... you are correct in that the Miami market is extremely competitive right now... and it will continue to be for the foreseeable future. This is not unique to South Florida either, the market as a whole is pretty much the same across the board. If you are looking for homes to flip on the MLS, you are going to continue to have a difficult time. With the current market environment, deals with profit margins that make sense for first time flippers are extremely difficult to find and even more difficult to get under contract.

As you have already found, there are not many REO properties for sale on the MLS. At the current moment, there are only 7 REO's under $400k in all of Miami Dade County... see link to listings: (Miami-Dade REO Listings).

I think the multi-family approach may offer you a lower barrier to entry. There are definitely more small multi-family properties (2-4 units) available than there are properties to flip. You can also try looking for single family homes with guest houses and/or in-laws quarters. Another option if you are paying cash is purchasing off-market properties from quality wholesalers. I may be able to help you with this depending on your circumstances.

Ultimately, your budget and financing strategy will determine what you will have access to. There are deals out there but they are not very plentiful and require a lot of effort to locate. I have had luck in the last few months finding deals that made sense for several investors that I met here on Bigger Pockets. One of them recently closed and 2 others are currently under contract. Hope this helps & best of luck!

Bradley Sriro · Answer

@Jean Rychlik no, I am not a wholesaler. I do come across off-market properties every now and then and I do have relationships with active local wholesalers.

Jean Rychlik · Answer

@Karla Castro I have been looking for my first flip in Miami too and it is certainly very competitive. The only reason I keep trying is because I believe in miracles. 😅 I asked one wholesaler for advice and he said look North, Palm Beach and further, where deals are more plentiful. @Bradley Sriro are you wholesaling?