San Francisco California vs. Virtual - Wholesaling and Rehabbing?

[Andrew N.]

Hey everyone,

I am wondering if I should begin by trying to focus on working in my local market (San Francisco Bay Area) for Wholesaling and Rehabbing or if I should attempt to do Virtual Wholesaling and Rehabbing in the market I will eventually try to Buy and Hold. My eventual goal is to rehab and then buy and hold cashflow properties out of state as CA properties tend to be more appreciation plays. I have a 4K per month marketing budget.

I feel as if the virtual lessons will have to be learned at some point and the real question is whether I should try to front load that learning when starting out or if I should try to get experience in a local market I know better. I've written what I consider the issues of each approach below. Any comments on things I missed or should also consider would be appreciated. Any advice is welcome!

Pro Virtual:

• Learn my future Buy and Hold Market
• Learn how to Virtually Estimate ARV
• Learn how to Virtually Estimate Rehab Costs
• Learn how to Virtually Close
• Learn how to Virtually Rehab
• Cheaper Properties - Buy and Hold as a backup Exit is more manageble

Local

• Less Market Learning Curve
• Look for closer to 75% ARV and thinner % spreads
• Possibly Higher Margins ($ per deal) for rehab due to higher prices
• Managing Team & Contractors Locally
• Very Competitive Market