Fix and Flip in South Florida

The underwriting frame

Most flippers start from after-repair value (ARV) and subtract everything it takes to get there: purchase price, rehab, holding costs, financing, selling costs, and the profit that justifies the risk. The common shorthand 'ARV × 70% minus rehab' is a screening heuristic, not a rule. At South Florida price points, a fixed percentage can hide a thin dollar margin or reject a strong deal. Underwrite in dollars.

• ARV: at least three closed comparable sales, similar size, age, and condition, close in distance and time. Adjust, do not average.
• Rehab: a scope of work priced by a contractor who has seen the property, with a contingency you set before you start.
• Holding: insurance, taxes, utilities, HOA or association dues, and loan interest for the full expected timeline, including permit time.
• Selling: commissions if you list, buyer concessions, title and closing fees, and documentary stamp tax on the deed.

How Dispo Pipeline presents a flip opportunity

When we share a flip candidate, any ARV or rehab figure comes with a basis and a date: which comps, who walked it, when. We label them as estimates. We do not publish guaranteed returns, and we expect you to run your own comps and walk the property with your own contractor before you commit.

South Florida cost drivers that change the math

• Roofs and openings: roof age, material, and impact protection affect insurability and price. A roof replacement is often the single largest line in the budget.
• Permits and inspections: kitchens, baths, roofs, electrical, plumbing, and windows generally require permits. Unpermitted prior work can surface at resale. Budget time for the municipal process.
• Older building stock: many homes in both counties date from the 1950s through 1970s. Plan for cast-iron drain lines, aluminum wiring, and outdated panels where applicable.
• Insurance during the hold: vacant and under-renovation properties are priced differently from occupied homes. Get the quote before closing.
• Flood zone: an elevation certificate and flood insurance can be relevant to both your hold and your buyer's financing.
• Condo and HOA rules: rental and renovation restrictions, approval timelines, and pending assessments.

Exit assumptions to write down

• Who buys the finished product: owner-occupant with financing, or another investor? That changes finish level, appraisal risk, and days on market.
• Seasonality and days on market in your comps, not a regional average.
• What happens if the property does not sell at ARV: can it rent and cover debt service? A flip with a fallback is a safer flip.

Team you need before the first deal

• A general contractor licensed for the scope, with South Florida permit experience.
• An inspector willing to go on short notice, including a four-point and wind mitigation report.
• An insurance agent who can quote vacant and renovation coverage quickly.
• A title company or real estate attorney who closes investor transactions and handles assignments correctly.
• A lender or capital partner with a realistic funding timeline, if you are not paying cash.