Buying a fixer-upper can be the best way to build equity in Miami, whether you plan to live in the home or flip it. It can also go wrong fast. After about 20 years of buying and renovating South Florida homes, here is the checklist we use.
1. Start with the after-repair value (ARV)
Before you think about the purchase price, figure out what the home will be worth when it is finished. Use recent sales of renovated homes that are truly comparable: same area, similar size, lot, pool or no pool, and similar finish level.
2. Budget the renovation honestly
- Walk the property with a contractor or someone who renovates homes, not just an inspector.
- Add a contingency of 10 to 20 percent for surprises behind the walls.
- Include holding costs: interest, taxes, insurance, utilities and HOA dues while you work.
- Include selling costs if you plan to resell.
3. The big-ticket items in South Florida homes
| Item | Why it matters |
|---|---|
| Roof | Age and condition affect insurability and insurance cost. |
| Electrical panel and wiring | Some older panels and wiring types can make insurance hard to get. |
| Plumbing | Older cast-iron drain lines and some supply line materials can fail and be costly to replace. |
| Windows and doors | Impact-rated openings help with storms and can lower insurance. |
| A/C | Essential in Miami and often due for replacement in older homes. |
4. Check permits before you buy
Look up the property's permit history with the city or county. Open permits and unpermitted additions or garage conversions are common in Miami-Dade and can be expensive to fix. Find out before your inspection period ends.
5. Insurance and flood
Get homeowners, wind and flood insurance quotes early. Many insurers require inspections such as a 4-point inspection on older homes. See our flood guide.
6. Financing options
- Cash is fastest and makes your offer strongest.
- Renovation mortgages let owner-occupants finance the purchase and the repairs together.
- Investor and short-term loans are common for flips; compare rates, points and draw schedules.
7. Make an offer that works
A simple way to sanity-check a flip: after-repair value, minus renovation budget and contingency, minus holding and selling costs, minus the profit you need. What is left is the most you should pay.
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