Is it too risky to do my first BRRRR deal in Florida right now?

[Jordan Rhoads]

My goal is to purchase my first BRRRR deal this year. I have a $82k HELOC and South Florida is looking like it could be a solid market. Is it too risky to do my very first deal during this pandemic in a virus hot spot? Or should I invest somewhere that is less affected by the pandemic for now? I really want to get my first deal out of the way to prepare myself for more opportunities in the next couple of years. I think Florida would be a great place for those opportunities. And it would be nice to already have a team there if more and more deals start popping up. I don't have a mentor yet so I'm hoping I can get some knowledgeable opinions here. Thanks in advance...

[Malgorzata Sadowska]

There are also so many reasons to invest in South Florida. While more expensive, the appreciation potential is greater = this is where the jobs, more expensive rents & fun activities are. We are also heavily influenced by international events (including how other countries are handling this pandemic) and & world economy (watch out for more capital flight from Latin America after the COVID dust settles). We are also going to continue to see lots of Northern Eastern folk either buy here (many New Yorkers came down, haven't gone back & will continue to buy). Last and not least, with historically cheap credit, our prices (Miami-Dade overall and many of its municipalities) have gone up year over year (despite the pandemic). We also have little known, yet, very important high number of entrepreneurs (see Kauffman Foundation studies) & arguably have fared better than other similarly dense parts of the country. No one knows if that's due to (1) relatively early lockdown (as a former firefighter, our mayor understood the threat early & closed everything earlier than authorities in other jurisdictions); OR (2) the warm, sunny & hot weather, which kills other viruses and is being studied as an impediment to COVID. No one really knows what's gonna happen is six months - too many known knowns to analyze and too many black swans. What's known is that Miami market is doing well and if a seller needs to sell (yes, people are still experiencing life events motivating them to sell), a buyer can do well right now with much less competition and inexpensive credit. Hope that helps! Feel free to connect, if any questions.