10/17/2024
I’ve seen well over 20 St. Pete wholesale deals today.
While not a surprise, this post is just a reminder for newer investors to go the extra mile before buying something that could flip your world upside down.
All of these deals I’ve seen are over priced and no consideration as to what the property appraiser website shows they will allow for renovation costs pertaining to the FEMA 50% rule. Many of the properties I’ve viewed are showing between $42k-$58k and rehab estimates are well over $60k.
Something else to take note of; If subject property is in a flood zone, paying for an appraisal on the property could potentially help raise that allowable renovation number a great deal in order for the deal to make sense.
The city may also push for complete tear downs to change neighborhoods, build larger luxury style homes in order to raise property taxes.
I would recommend to also be aware of which neighborhoods flooded outside of flood zones that will possibly be placed into a flood zone in the near future needing flood insurance.
If you’re not 100% sure about the deal please just be aware and take your time performing your due diligence by reaching out to a more experienced investor for help.
