How to Flip Luxury Homes in Tampa | $700K to $1.2M Fix and Flip Strategy

Indhira Familia (00:00)
You can, but it will depend on how comfortable you are also with the risk and how is your budget, right? Because also if you get out of control in those projects, that would the the hit will be hard. So it’s something someone wants actually just to learn, start learning, it’s the entry level will be just fine. Even though your target at the end it’s luxury. If you start with the

the entry level, you will your even that you make mistakes, those mistakes will be that painful or hit your pocket as much as the other ones.

Dylan Silver (02:11)
Hey folks, welcome back to the show. Today we’re joined by Indhira Familia, a realtor and Miami-based investor, focused predominantly on single-family fix and flips in the Tampa area. She has a background in industrial engineering. Indhira, thanks for joining us here today.

Indhira Familia (02:28)
Thank you. Thank you for the invitation. I’m really happy to be here.

Dylan Silver (02:31)
Great to have you on. And we were talking in the green room. There’s a lot of interest in Florida as a whole and so many different markets in Florida. Why Tampa?

Indhira Familia (02:41)
Well, actually Tampa is one of the cities that have had a lot of growth in the past years and continue to have it. A lot of investments. it’s it’s growing so fast, so why not? It’s actually the the one of the best markets right now to invest.

Dylan Silver (02:57)
You know, I’ve had quite a few guests on the show from Florida, and there’s so many different areas of Florida, it almost seems like there’s friendly competition. You know, you’ll have people from Tampa say that Miami is, you know, not as good and vice versa. and then you’ll also have frankly different cultures, it seems like, and different lifestyles. when you’re comparing Miami where you’re at, to Tampa, is there truly a different lifestyle?

Indhira Familia (03:22)
Yes, actually it is a little. in Tampa it’s more like calm, it’s not that like fast as here as Miami. Of course, Miami also has other areas that are really like more like people that don’t like too much crowd or noise. But Tampa, also areas that are more crowded, like downtown, which really it’s amazing, super beautiful, and other areas that are if we want a big house with a really

lot of space and backyard. Like this is the moment. a property there is like say half million. You can for you to have that here in Miami, you will need like double or more. And and the quality of the the quality of the schools and everything, it’s it’s amazing.

Dylan Silver (04:05)
I was gonna say there’s a huge acquisitions cost increase when you’re in South Florida versus Tampa. I wanna get a little bit granular if we can about what it takes to make an acquisition in Tampa. in the fix and flip space, sometimes distress is a good thing. You’re looking for properties where you can purchase, add value and then exit. What is the typical acquisition price that you’re looking for in the Tampa area?

Indhira Familia (04:31)
Well, initially we started with around three three hundred, three hundred thousand, but now we are buying properties seven hundred thousand or one million. We have increased our we our we are now moving more to the premium luxury area.

Dylan Silver (05:37)
Those flips have to be something else entirely. I haven’t had too many guests on the show talk about those premium flips, especially in Florida. Very competitive place to be doing so. it’s a different process entirely, right? what all goes into it and maybe break down some of the differences between those flips and the more entry level flips?

Indhira Familia (05:58)
Yes. Let’s say the entry level, those are three hundreds or less. It’s more like a standard. You will see more like the finishing is more like shakers, vinyl floor all the type other type, even the doors, everything changes. And and but in the premium you will see other custom cabinets. you will see another line of of appliances.

Sub-Zero or or others that on the from the line of of Samsung and other other brands that really have a like a another other high top and also the the we do more accent wall we also have you may see a pool is other different market also the buyers are looking for something different the the accents that we add in

in the in the front of the property, the landscape, everything is different. We also included, for example, one that we saw recently, we added a mini-golf court in inside the backyard because the it that one has also like a view with the lake in the back. You are seated in the in the pool and you can see the lake and you have the golf. You we added the outdoor kitchen.

Everything that it’s more for that type of clients, of type of type of buyers that are looking that feeling of premium.

Dylan Silver (07:23)
Now, when you’re doing that kind of luxury flip, does days on market increase or is the market so, you know, frenzy over there that it’s short as well?

Indhira Familia (07:33)
That would depend on the market, but definitely it would depend also on how you the finishing that you use in the property, how good you do it, how best also on your comparables. We we have to see what people like in the area. Some people like the vinyl flooring, some people LVP and some people like the tile. Also others are looking for shingles, others will like the tiles as well, the tile roof. So that would depend on the market.

But mostly in our experience the time have been really like less than fifteen days.

Dylan Silver (08:06)
That’s a good flip. when we talk about acquisitions and value add, one of the tricky things is you don’t want to set the market, right? You want there to be some comparables. So are you targeting these neighborhoods where there’s, you know, good values, but also, you know, maybe some older homes?

Indhira Familia (08:24)
Yes, correct. The the we are targeting on on neighborhoods there are really good communities that have really good houses, but they are from the two thousands early and they are outdated. And we’re looking to increase the value of those communities and the people are really the neighbors are really they love it because they know the the their property is gonna increase the value and they know they know that the properties are their communities getting nicer. And those also attracts nicer people.

Dylan Silver (08:54)
What are some of the risks that sometimes can go overlooked when you’re doing these high end flips?

Indhira Familia (08:59)
for example, if you don’t take in in consideration what I mentioned about the comparables, if the comparables in the area they use tiles, flooring, and then you use LVP, that’s that could be a huge downside for you. also with the the if you can tell if the your property is so much smaller in living area or heated area than the one that you are comparing to.

that also affects because there are different markets. It’s not the same people that buy a fifteen hundred square footage property than another that is three thousand square footage. And in those cases it’s a totally different buyer, different market. It it it’s its the behavior is totally different.

Dylan Silver (10:21)
Now, when you’re making an acquisition, you mentioned seven hundred thousand, what can you expect when you exit, when you go to sell that property?

Indhira Familia (10:29)
You mean the about the the ARV, the after-repair value of the profit? Yeah. Well, we’ve if I buy, we we actually have a guidance with a formula that it’s like the my maximum allow offer that I can what is the maximum that I can buy. And our expectation for a property that we we buy for 700 is that we sell at least for one point one. And also that would be

or 1.2. But also what that would depend on how much work the property needs. If the property needs only one hundred thousand, then I can buy for one point one and I’m fine. But if it if it needs to like two hundred thousand in renovations, maybe I need one point two in as ARV so I can have a leverage of of my return because it’s not only about how much I’m gonna gain, it’s also about the return.

of the investment that I’m doing because the reason it’s it’s triple what compared when I’m when I was doing properties of 300. When I was buying property of 300.

Dylan Silver (11:39)
You know, one of the challenges that flippers face is of course managing contractors and subcontractors. how have you approached managing, you know, the flip itself and those contractors?

Indhira Familia (11:52)
Well, to be honest, we work very directly with them. we visited the the contractors we provide, we do like what you call a scope of work. We do a contract, we walk with the entire house and explain every detail with the contractor, try to set all the expectations. And in every decision true that they make, every step of the project.

they provide feedback and it’s a continuous feedback and supervision during the the weeks of the project, maybe two to three weeks, three times per week. And that thing that’s part of has been part of what we have received as successful when we are doing the the flips. But also you know that

Even though there are other types of contractors that anyway we have to be on top, on top, on top, because we are the interest most interest party that we want to make sure that it doesn’t affect our budget, our holding time, and going in back in the market with a renovated property in this in the time that we were expecting. Because if we go to we stay in in the renovation process too long, the market can shift and affect my my

My profit.

Dylan Silver (13:08)
You mentioned that timeline. do you have on these high end flips, do you have a target timeline, a number of days that you want to be in the flip itself?

Indhira Familia (13:17)
Yes, w we average six months. That’s our average. That’s like our max. That’s I’ll say minimum. Because times the only thing that we cannot control is the market. And and sometimes we think that it could stay only fifteen days, but it could stay one month. But what I can have do have control, it’s about the rehab. So that’s why I have to

reduce the rehab time as much as possible to go in the market as soon as possible.

Dylan Silver (13:51)
Now, when you went from the three hundred thousand dollar acquisition price to the seven hundred, different different ball game entirely. It’s a different arena. Was that transition a natural one or did you have to get, you know, third party, you know, people in there to to guide you through this?

Indhira Familia (14:52)
No, actually it was natural. because we also as listing agents, we have worked directly with that those type of property. We have my partners have done also renovation for those type of properties in the past. So that really was really smooth. It was more more like a decision.

Dylan Silver (15:09)
And so that transition was, I can imagine, you know, heavily influenced by the homes that you’ve listed, right? You know what looks like a $1.2 million home and you know what looks like a $500,000 home. And then you also understand, right, well, this is where the market is right now. So if we’re able to bring this product in this area of Tampa, this is probably how long it would sit on market or if it’s going to be, you know, flying off the shelves immediately. I imagine pivoting here, Indhira.

There’s a lot of folks who are realtors themselves who may be interested in getting into flipping. Do you think that it’s important to start in the more we’ll call it entry-level flips if you’re gonna get started? Or if you already are a luxury agent, can you do a luxury flip as your first flip?

Indhira Familia (15:55)
You can, but it will depend on how comfortable you are also with the risk and how is your budget, right? Because also if you get out of control in those projects, that would the the hit will be hard. So it’s something someone wants actually just to learn, start learning, it’s the entry level will be just fine. Even though your target at the end it’s luxury. If you start with the

the entry level, you will your even that you make mistakes, those mistakes will be that painful or hit your pocket as much as the other ones.

Dylan Silver (16:35)
Yeah, with leverage there does come increased risk, right? And of course, you know, you got timelines, you’ve got managing contractors, you’ve got, you know, f finding the right price to purchase a property for, but then making sure that it sells in the right time frame. when you’re working with

potential clients and both as a listing agent but then also, you know, as someone who may be looking for deals, right? And so someone who may have an opportunity to purchase their home. What are those conversations like and is the conversation with the, you know, quote unquote distressed seller a totally different type of conversation?

Indhira Familia (17:11)
Mean when I do the acquisition, this if it is listing major or a wholesaler, yes, totally different conversation. with the wholesaler, we go straight forward. They we know we already know we are talking about, they already know if the if what works or doesn’t work for me. And I just say, This is the number that works for me. It doesn’t work for that person, I try to negotiate. If I really like a property, no, I say, okay, if you are willing to negotiate, then let me know.

Dylan Silver (17:16)
Right.

Indhira Familia (17:39)
And do follow-ups and and make sure to to get it. We we do our best. We need to to work really fast because with the wholesaler it’s just like like less than 24 hours sometimes. And we need to rush fast and see the properties because we don’t buy on seeing. We buy we see all the properties that we buy. even that that we are buying from a wholesaler that we have worked before, that’s something that we is a must for us.

And but when we talk with the listing agents, it’s totally different. With the listing agent, we need to talk up to see what’s the seller’s interest, what actually they are looking for, if they are actually one are just retiring or or is a probate, or maybe they they are selling because they want another house. We need to know what is the feeling, what actually the the reason of the sale, so we can know if actually

the the proposal, the offer that we are making, it’s makes sense for them.

Dylan Silver (18:32)
If we look at the different ways where you’ve acquired properties, you mentioned wholesalers, you mentioned, you know, going to on market properties and through a listing agent. does direct to seller play a role here too? Are you ever getting these deals direct to seller?

Indhira Familia (18:46)
Yes, we have because also as we are realtors, we also have referrals from for example we saw a property and the neighborhood in the in the front, it just said, I want you to buy my property or help me sell it. Or the also another agent cut came and said, I have this listing, even it is but I don’t have a list yet. Let me know if you’re interested. Also, we

drive by and see properties that we might be interested and we we can reach out or we put sign as well. So people reach out to us. So we we try to see different ways to find deals.

Dylan Silver (19:26)
Now, a lot of times, especially for folks who are scaling, right, they’ll find something that works on a small level and pour a bunch of money, time and resources into that. and sometimes it works out, but sometimes it doesn’t. It seems like you’ve got a pretty diverse way of acquiring these properties. Has any one source worked better than others? Has it been, you know, your your sphere or those listing agents, your wholesalers or something else?

Indhira Familia (19:50)
You mean the the main of us initially most of them were wholesalers. then MLS and now we have also like it’s like a mix right now between referrals or based on their relationships, MLS and also wholesalers. Also if someone is starting and they are real estate agents, they could be also be more comfortable buying from the MLS because they you have an inspection period that you can just

back off and say, okay, I don’t wanna move forward, but you don’t lose your money or your time. And but if you are going with a wholesaler, you have to be all in.

Dylan Silver (20:26)
when you’re finding the the higher end flips, are a majority of those through wholesalers?

Indhira Familia (20:31)
no, through MLS.

Dylan Silver (20:32)
through MLS. I’m imagining that those conversations are, you know, tricky in their own way, right? Because that’s a property that’s listed. That seller may have sometimes unrealistic expectations for what their home can get. It may be sitting in some cases. So what are those conversations like when you’re going to the listing agent?

Indhira Familia (20:50)
Well, we first start knowing, as I mentioned, about what is the interest of the seller, what they what actually moving them to sell. We if we see the properties sitting too long, we that’s part of our approach and tell them, hey, we can just you can close in three weeks and move forward. It’s a cash offer. All the the the proposal, of course, even is MLS, it’s cash, no financial contingency.

And between three to seven business days for inspection period. And also we negotiate with them in case that they would like to stay in the home post-closing if that’s something they or they need like two months to leave because they are moving to another state or need to go to get some rental after the sale. We are okay with that. So we are very flexible.

Dylan Silver (21:45)
when you’re getting a property under contract, you mentioned the inspection period. Are there any big things that you’re looking for during that inspection period, whether it’s the property itself or, you know, about the the data and the numbers?

Indhira Familia (21:58)
Yes, we basically look at structural. Sometimes we see a lot of signs of a struc settlement settlement roof. we also look at if there are any termites, camera in the if the property it’s before let’s say nineteen seventy something, we try to

put a camera to see the plumbing if it’s cast iron and what it’s because some so there was once that we saw there were roots of of a tree inside the the plumbing. and there’s something that’s something that you cannot see. There’s no way you can see that even the the toilet is flushing. That’s the that means the it’s flushing to the to somewhere down not

to the direct to the slab and in some way it could affect the foundation. So basically we do like a comprehensive report, very detail oriented for the buyer, all the all everything that the you can can see there. And but make basically those items.

Dylan Silver (23:06)
we are coming up on time here, Indhira. Any new projects that you’re working on? And then also anything you’d like to mention directly to our audience?

Indhira Familia (23:13)
Yeah, well we are continuously looking for properties and looking also to work with realtors. Someone can bring us also deals. We are open to offer compensation. We have right now five projects running during rehab. We are looking for properties also that we have to include increase our portfolio of co-living properties and that we have under short-term rental. And also we have properties on market right now.

One in Dover and also one in South Tampa. really excited, really nice property. I think that we we really do a really great job. And open to negotiate with anyone can follow us on Instagram and contact us directly, would be awesome.