Having Trouble Finding Flips - Tampa

[Kristen B.]

Hello all! 

My father and I have recently decided to go into the flipping business. He is a 30+ year property insurance claims adjuster and I am a soon-to-be marketing graduate and real estate junkie.

I have convinced him to sell one of his fully paid-off properties in South Tampa that he's had as a buy-and-hold for years. The problem? It's a 2/1 and $350k bungalow that only rents for $1300 a month and has incredibly high taxes and insurance because it is a block from the bay. While it is an easy rental (rented in 1 day) and easy to sell (people knock on the door and try to buy it even when it's not on the market), it's just not ideal for cashflow and I'd like us to use the cash to start flipping. Because the property is already paid off, it will be pure profit. (Do you think this is enough to start?)

Between his ability to easily go into a home and appraise what the damage will cost to fix and MY eye for detail, staging, and layout + the energy to do the things (like put floors in and tile) that he is less-than-excited about, I think we'll make a great team.

My only problem is that I'm struggling to find deals. I find 1 to 2 every month that I feel confident will pass the 70% rule and though we've yet to attempt to purchase any, about half get up-bid past my bottom-line number and in the past three or four months there have only been about 3-4 I would have absolutely jumped on.

I tend to steer clear of foreclosures and look more for short sales and REOs so we can inspect. I also look for 3/2 minimum in North Tampa, family friendly neighborhoods like Northdale, Lutz, and Land O' Lakes.

I guess my big question is: Is anyone in the Tampa area (or in other areas) having these problems? And if you aren't, do you have any recommendations for finding deals? I don't network as much as I should (shy as a button) but surely there must be other ways, right? Most agents are not very helpful, not because they don't want to help but rather because I think they are having problems finding these deals too.

Thanks in advance for your help.  It is appreciated more than you know.

[Steve Kachniewicz]

Tampa is a huge flip market. You have too much competition with deep pockets and tons of experience. My advise would be to look in a less populated area where not as many investors are all competing for the same distressed houses. Also, the $1300.00 monthly rent for the house you are referring to seems low. Especially if you are able to rent it in a day. I would think you should be able to get a minimum of $1700.00 a month if not more.