Fix and Flip Loans in Tampa
House flipping is a great way to make money in Tampa. The city is full of opportunity and offers plenty of properties to turn into profitable investments.
The process can seem daunting if you’re new to flipping houses. There are a lot of things to consider, and it’s essential to have a solid plan in place before you get started. One of the most important aspects of any flip is financing.
You need to have the right financing to maximize your potential profit. That’s where CapSource comes in. We can provide you with fix and flip loans in Tampa to help you get the most out of your investment.
At CapSource, we understand the needs of house flippers. We offer loans designed explicitly for flipping properties, with flexible terms and competitive rates. We can help you get the funding you need to make your flipping business successful. 90% of purchase price + 100% of rehab cost.
The Current State of Tampa’s Real Estate Market
Tampa’s real estate market is currently booming. The city is attracting new residents and businesses, which is driving up the demand for housing. This increased demand has led to a rise in home prices, making now a great time to invest in flipping houses.
Home sales are predicted to increase by 9.6%, and prices may grow by 6.8% yearly. This trend is expected to continue throughout the year, making it a great time to get into the flipping business.
Additionally, the current sale-to-list price ratio is at 99.6%, meaning most properties get sold for a little above their asking price on average. This is good news for flippers, as it indicates that there is room to negotiate on pricing and still make a profit.
What Are The Trends of Tampa’s Real Estate Market?
Several trends are currently driving Tampa’s real estate market. These include:
Trends in Supply
According to Movoto, there are nearly 3,692 active listings in Tampa, and properties spend an average of 105 days on the market. This means that it only takes over two months to sell an average home in Tampa.
Trends in Home Price
The median home value in Tampa has increased in the past decade and is predicted to grow continuously. Because of low-interest rates, held-up demand, and a shortage of inventory, the need for homes turned into a contest.
Houses received more offers, leading to bidding wars that have increased the cost of buying a home by as much as 34.8% in the last year. Prices are predicted to increase by 12.5% over the next few months.
Trends in Interest Rate
As the Federal Reserve pursues to bring inflation under control, interest rates continue to increase. The average commitment rate on a 30-year fixed-rate mortgage is 5.51% and is expected to continue climbing. As inflation rises, it is safe to assume that the Federal Reserve will continue to increase mortgage rates.
Trends in Investors
Tampa real estate investors are increasingly turning to rental properties because of their relatively low-interest rates and high home prices. Investors believe that flips and rehabs do not provide as much profit as they used to.
Local investors are still flipping homes, but the economics of the city’s housing market make long-term rentals and traditional mortgages more favorable.
What’s the Forecast for Tampa’s Real Estate Market?
The Tampa real estate market has shown low-interest rates, steep competition, and insufficient inventory for the past couple of years.
However, the Federal Reserve’s resolution to increase interest rates to prevent a recession has changed these dynamics. Mortgage applications are down, rates are up, and demand still outpaces supply.
The Tampa real estate market forecast for the next few years looks like this:
Increase in Home Values
Home values in the Tampa housing market are expected to rise over the next 12 months. Mortgage applications have decreased, suggesting that competition will subside. However, there still needs to be more supply to keep up with the demand. Homes will continue to receive multiple offers but fewer than before, allowing sellers to increase prices but only to a certain extent.
Increase in Rent
The Tampa real estate market has about eight weeks of available inventory. Fewer people can afford to buy homes, so they are turning to rentals. As a result, the average rent has increased by 14.2% over the last 12 months and is expected to continue rising.
Increase in Interest Rates
Inflation is rising quickly, meaning the Federal Reserve may resort to increasing interest rates to slow down the economy. It is now only a matter of time until the Feds increase the interest rates. When this happens, the cost of owning a home in Tampa will also increase.
Why Should You Consider Investing in Tampa’s Real Estate Market?
The Tampa real estate market is a great place to invest. Home values are predicted to rise, rents are increasing, and there is still a high demand for housing. Even though interest rates are expected to rise, making it more expensive to buy a home, now is still a good time to invest in Tampa’s real estate market.
Here are a few reasons why:
Tampa Is the Third Most Populous City in Florida
With a population of over 3 million, Tampa is the third most populous city in Florida. More people are expected to move to the city, and more residents mean more people are looking for places to live. This is good news for investors because it means there is a large potential buyer and renter pool and a high demand for housing.
The Private Sector Is Growing in Tampa
Tampa is one of the fastest-growing cities in the United States. The private sector is responsible for this growth. Major companies are relocating or expanding their businesses in Tampa, which is creating new job opportunities. This is good news for investors because a growing job marketplace is attractive to many people, especially young adults.
Tampa Has a Growing Renter Population
The percentage of people renting in Tampa has been increasing for the past few years. High home prices have made it difficult for many people to buy a home. As a result, more people are choosing to rent. This is still good news for investors and flippers because there is still a high demand for housing, and potential buyers may be willing to pay more for a property in good condition.
The housing affordability index of Tampa is 5 out of 10, which is mid-range. This means that houses in Tampa are more affordable than in most cities nationwide. This makes Tampa an excellent place to invest because there is still room for home values to increase without pricing out potential buyers and renters.
Improved Quality of Life
Tampa is one of the best places to live in the United States. The city has a great climate, beautiful beaches, and a growing economy. These factors make Tampa an attractive place to live, which is good news for investors because it means more people will be moving to the city.
Choose Capsource for a Fast and Secure House Loan Solution
If you’re looking to invest in the Tampa real estate market, CapSource is here to help. We offer a variety of loan products that you can tailor to your needs and budget. We’re committed to providing fast and secure financing so you can close on your investment property quickly.
CapSource has a wide variety of loan products available, including:
- Fix-and-Flip Loans
- Fix to Rent Loans
- Construction Loans
- Refinance Loans
- DSCR Loans
Our loan products are designed for investors looking to purchase, renovate, and sell properties in the Tampa real estate market. We offer competitive rates and flexible terms so you can maximize your profits.
Why Should You Choose Capsource for Your Tampa Fix & Flip Loans?
CapSource is the leading financing provider for fix and flip investors in Tampa. We have a simple and efficient loan process that can quickly get you the funding you need to purchase an investment property.
- Competitive Rates: We offer some of the most competitive rates in the industry so you can maximize your profits.
- Flexible Terms: We offer flexible loan terms so you can tailor your financing to your needs. 90% of the purchase price + 100% of the rehab
- Fast and Efficient Loan Process: We have a streamlined loan process that makes it easy to get the funding you need to purchase an investment property.
- Interest-only Payments: We offer interest-only payments so you can make lower monthly payments while you’re renovating your property.
- No Prepayment Penalty: We don’t charge a prepayment penalty so you can pay off your loan early without fees.
Whether you have zero experience flipping houses or you’re a seasoned investor, CapSource has the right loan product for your needs. We’re committed to providing fast and secure financing so you can maximize your profits.
We Offer the Most Competitive Fix and Flip Loans in Tampa
If you’re looking for the best fix and flip loans in Tampa, CapSource has you covered. We offer some of the most competitive rates in the industry so you can maximize your profits.
We also offer flexible rates and terms so you can tailor your financing to your needs, and our streamlined loan process makes it easy to get the funding you need to purchase an investment property.
To learn more about our fix and flip loans, contact us today. We’re here to help you make the most of your investment in the Tampa real estate market.