036: Update on my $500,000 Flip, Rentals in Florida and Developing Land

On this episode of the InvestFourMore Real Estate Podcast I talk about what my current investing world looks like. I have a lot of things going on and I have made some big changes in 2016. I have 9 flips at the moment, I am headed to Florida in March to check out rentals and I am slowly making progress on a $500,000 flip I bought in November. I also have land under contract that I am thinking of building a subdivision on!

How has 2016 been for my fix and flips?

The end of 2015 could have been much better for me. I had some major problems with contractor and my project manager that slowed me down a lot. I was not able to get properties repaired in a timely manner, which slowed me down getting homes rented and flips completed. In 2016 I have completely rebuilt my rehabbing process and things are going great now. I have a couple of people on my team handling the contractors, repair estimates and check-ups. Things are getting fixed faster and cheaper than ever before.

I have 9 flips now since I sold one last week. I have 2 more that I am selling in the next two weeks and 2 more flips that I am buying the beginning of March. The flips have been working out great even though they are taking way too long to complete. The reason they are working out great is our prices have been increasing, so holding the properties longer has actually made me more money. We joke about this concept on some of the coaching calls I do about how a crazy market can promote negative ways to do business! I would never suggest holding properties hoping the market will increase in value.

I bought a $500,000 plus flip last year that I am still working on getting possession too. The house is occupied and there are some issues I cannot discuss online, but the house was a great deal. I should be able to sell it for $800,000 plus once it I can gain possession. The home is in great shape and I was able to view the interior a couple of weeks ago.

My rental property strategy for 2016

I have not bought any rentals in 2016 or have any immediate plans to do so. Prices have increased so much in my area that it is really hard to find any properties that come close to the returns I am looking for. Even when I see an awesome deal that I could flip, the numbers don’t make sense for a rental. Property values have out paced rentals rates, which makes it tough to cash flow.

I have a trip booked to Florida in March to check out some new locations for rentals! It will also be a nice vacation with the family. In Florida I hope to find some locations that have great cash flow and possible appreciation as well.

How am I becoming a land developer?

I have some land under contract that I may create a subdivision on. I saw some land come up for sale a couple of weeks ago that was too good of a deal to pass up. I got it under contract right away and have been researching creating a subdivision and possibly building a house or two. I have never built a house and I have never created any subdivisions or done any land deals (except buying and selling one lot). There is the potential to make a lot of money creating a subdivision, but there is a lot of risk involved as well! I will keep everyone updated on how the process works and develops as the project progresses.