All Forum Posts by: Benjamin Hershkovich

@Mason Liu thank you! 

Hey @Benjamin Hershkovich you've got a LOT of great responses here. Indeed - it is challenging to find deals at 250k these days. If you're cash- it's definitely easier. If you're financed - it's a bit of a battle. That being said - you could look in Port St Lucie. A LOT more accessible pricing there. (still substantially higher than where it was 3 years ago of course.) 

Happy to talk further if you want or answer any questions you might have! 

Best of luck to you no matter what. 

 Do you have a local real estate agent in the space who deals with investors? If not, I'm happy to refer to an agent I work with here.

Off market properties involve a lot more leg work. Driving for dollars, marketing campaigns via direct mail / cold calling. That becomes more a business. Not saying you shouldn't do it, but that involves a whole new game plan.

Hey Benjamin,

One thing I'd say is that it is pretty tough to find fixer upper homes (even townhomes) for less than 250k in palm beach county on market unless you're looking in some rougher neighborhoods, maybe some parts in Lake Worth. It can be done for sure, you proably will just have to make lots of offers and be prepared to get a lot of rejection.

Benjamin Hershkovich  

I suggest you use a good rehab. calculator. The calculators here are reasonable. I use flipper force. A good flip calculator will aggregate your total costs and tell you the outcome so long as your repair estimate is close to accurate. I agree with the suggestion that you need to know all of the HOA fees and other costs to determine the accurate net profit before taxes. You can not go on the MLS and buy a listing and expect to make a profit. You will have to find off market properties or estates or other private sales in order to make the effort worthwhile. Good luck,

Benjamin Hershkovich  

I suggest you use a good rehab. calculator. The calculators here are reasonable. I use flipper force. A good flip calculator will aggregate your total costs and tell you the outcome so long as your repair estimate is close to accurate. I agree with the suggestion that you need to know all of the HOA fees and other costs to determine the accurate net profit before taxes. You can not go on the MLS and buy a listing and expect to make a profit. You will have to find off market properties or estates or other private sales in order to make the effort worthwhile. Good luck,

Benjamin, Your question is all too familiar where people are asking is a market saturated and are there deals to be found.  There are deals anywhere if you know what you are looking for and have the right exit strategies.  Florida is still a ht market so there are buyers which is what you want.

The thing you did not define in your example was what the reno budget was and what you were expecting to do; i.e., cosmetics only, minor reno, etc.  The other thing about Florida especially in condos and town houses is that many have covenants that make it difficult for flippers.  My father lives in Stuart and his complex has age restrictions, work hour restrictions, no rental for a year restrictions, vehicle restrictions, etc.  For him it works - for many it would not so a good deal in his complex would have a small exit market to shoot for.

I would suggest looking at some of the complexes you are considering and seeing what restrictions they have and what the HOA fees are BEFORE signing a contract. As far as reno scope goes, define what you want to do so you can get an idea on what you will be putting in to see if the numbers work. Townhouses and condos make structural changes a challenge and you will likely need engineer plans to proceed.

Your numbers show a spread of between 100K and 120K and with expecting to get 35K out as profit, there is more to figure than just the reno . . . holding costs for the funds (this can really eat you up if your timeline is off), utilities, insurance, closing costs on both ends . . . make sure you get some practice with the calculators here on BP as they are quite useful.

Good luck . . . .