Source: saintpetersburgtimes.fl.newsmemory.com
Flipping opportunities in Tampa Bay (and Florida) have diminished greatly over the past several years as distressed homes are clearing out of the pipeline. When small investors get into flipping houses at this stage of the cycle, there is much more risk involved than they understand. Additionally, when the cost of capital is 12% or higher from hard money lenders such as Lima One, and you factor in all the transaction costs, the margins get squeezed and the only one making a profit on the deal is the lender and brokers.