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Anybody Flipping Houses on STX ?

 

longhorngreg
(@longhorngreg)
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June 16, 2014 12:05 pm  

I have been flipping houses in Austin Tx for 20+ years and my wife(A nurse who runs a eye surgery center) are considering a move to STX if not permanently maybe just to slow down for 1-2 years. I do not think I could just lay on the beach and go to happy hour and would consider flipping houses on a much smaller scale then I do in Austin. I am in my 40's and my wife is in her mid 30's. Anybody out there doing this ?


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speee1dy
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June 16, 2014 12:12 pm  

i was going to ask if you had been to that seminar at the divi. the person who was asking for 3000 for his secrets was just here to try to get money from the people who live here. i hope he did not get any.

there is not much of a market for that here


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STTGuy
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June 16, 2014 12:56 pm  

We had flipped a few back in the states before we came down, and also thought that we might try it here (In St Thomas). However, I would agree with speee1dy - things are different here. With the much higher cost of materials and construction, and the sluggish market (not to mention the difficulty in finding reliable contractors), we abandoned the idea.


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longhorn
(@longhorn)
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June 16, 2014 3:43 pm  

hook em' greg. the market is too depressed now to consider it in stx. plus market values vary widely, so i wouldnt do it.


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mtdoramike
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June 16, 2014 4:22 pm  

The problem with flippers are, they pay retail or there close to it, take a perfectly livable house, go in and invest another $50,000.00 to $100,000.00 to a house that is already at pretty close to the top of the mark. This is one of the things that caused the housing bubble were banks loaning money without any collateral to people as well as flippers, which in turn pushed the housing prices over the top to the point average income or below people could no longer afford to buy that fixer upper. House flippers do serve a purpose like rehabbing those run down crack houses that they can get for cheap and make something beautiful out of them. But on the Islands, where are you going to find cheap houses to buy and flip? People here know what they have and it's priced the way it is priced because property in the Islands is a very limited commodity, unlike in the states like Texas and Florida. The Big plus here that I must add, is banks in the Islands don't loan money to people to buy houses that don't have a job, no proven STEADY source of income and without having a minimum of 20% down. This is why you don't see that many foreclosures in the Islands like you see in the states. The banks here didn't buy into that same new lending policy that the stateside banks bought into.


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longhorngreg
(@longhorngreg)
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June 16, 2014 5:39 pm  

No I have never been to a seminar and I learned how to do it the right way through trial and error, never over extending myself and not being greedy. Maybe that's why I have been doing this since I was in college

Mike- You are casting a pretty broad brush on people that flip houses. Its not like its portrayed on TV ! In no way would I ever pay anything close to market value and attempt to create value......just not my model. And....its been a long time since I have needed to carry my 9mm to a flip ! lol

I do appreciate the input but I have also been a believer that you can flip houses anywhere. While I may have 7-10 flips going on a time now, I do miss not doing the work myself anymore and would be interested in doing 1-2 at a time in the islands


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SkysTheLimit
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June 16, 2014 6:02 pm  

The problem I see is you saying "slow down for 1 or 2 yrs". It can take longer than that to sell a house. I suppose it could be done. Plenty of fixer uppers here. The carrying costs and the time it could take to sell would be a hurdle.


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Alana33
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June 16, 2014 6:10 pm  

The problem I see is you saying "slow down for 1 or 2 yrs". It can take longer than that to sell a house. I suppose it could be done. Plenty of fixer uppers here. The carrying costs and the time it could take to sell would be a hurdle.

Agreed. By the time you purchase a property, renovate it and actually sell, it will take considerably longer and cost more than in the states.
The markets are quite different and houses don't fly off the market and get sold quickly here unless they are truly an exceptional deal.
Not uncommon for homes to be listed for sale for 2 yrs. or more. Prices are higher here than stateside for comparable properties. Flipping works well in the states, not so much here.


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CruzanIron
(@cruzaniron)
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June 16, 2014 6:16 pm  

Lots of homes in Williams Delight to be flipped...


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speee1dy
(@speee1dy)
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June 16, 2014 7:04 pm  

lots of homes need to be and could be flipped but only if you have the cash flow to keep going while the house sit on the market for years.

you all remember that speck house out west that sat empty for years. green two story house that looked like it belonged up north. really small inside-cute but small. and there was another one somewhere out est that had a small pool. i think it sat empty for a long time too.

lol cruzan


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AandA2VI
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June 16, 2014 9:46 pm  

Why don't you call Kim Lucas and ask a professional who sells houses on STX. Other than the long for sale times (1-2yr) average I could see it working.


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Rowdy802
(@Rowdy802)
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June 17, 2014 11:44 am  

I wouldn't try to flip a port-a-potty in the VIs...


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longhorngreg
(@longhorngreg)
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June 17, 2014 4:06 pm  

I appreciate all the input. My model usually involves buying at such a price that I can renovate and sell for less than a comparable unrenovated property in order to put my property in prime position to be the next one sold in a slow market. Purchases are cash so holding costs are minimal


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Alana33
(@alana33)
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June 17, 2014 4:32 pm  

Prices are much lower in STX than in STT or STJ.
Neighborhoods are also vastly different here than in the states as is the market. Do your homework.
If you are really intent on doing it, have at it and be sure to let us all know just how it works out for ya.


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IslandHops
(@IslandHops)
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June 17, 2014 4:45 pm  

I wouldn't try to flip a port-a-potty in the VIs...

Ha - and you'd probably make more money flipping pancakes!


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NugBlazer
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June 18, 2014 1:03 am  

I wouldn't try to flip a port-a-potty in the VIs...

Smartest comment in the whole thread. Flipping in the VI would be a surefire way to give yourself a heart attack.


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