Not started, yet but ready for action!

[John Cervera]

My father(who should be retiring soon) and I, are interested in getting started with flipping. He has a lot of experience as a carpenter and project manager. Neither of us has experience with Real Estate Investing. We have some cash, roughly 40k, and can probably get a HELOC as well. We would love to be able to get our first deal done with as little financing as possible(the HELOC, or friends and family, although that is definitely a plan for the future). Which of course means looking at extreme low cost older homes that need a lot of work. The work we are not afraid of. In our local area, I'm not seeing anything in that kind of price range, even in terrible condition. So far just looking at Realtor.com, redfin, movoto, and Craigslist(which is a major pain, maybe im not doing it right).

I have therefore targeted a couple towns about an hour to an hour and a half away, that i have very little familiarity with, but have been told they may be good places to start. 

At issue is, most homes I've seen so far, in the price range that fits our short term strategy, are over 100 years old, do not have AC, and need a lot of additonal work. Again the work itself not a problem. But will these homes sell? Will they sell fast enough? Will they generate enough profit to continue?

Area we are currently targeting- Minersville, Pa, Pottsville, Pa, and perhaps surrounding towns.

Couple of additional questions

Would agents actually be willing to help locate us deals at these very low price points?

Good idea to try wholesalers as well?

Appreciate any feedback

[Shiela R.]

Hi @John Cervera, I love your enthusiasm.  And some good questions.

To answer if these homes will sell, you need to look at what is selling. Essentially, you need to know your market. What are the characteristics of a recent SFH sale? Are they only 3/2/2s? Are the 100 year homes selling but only if they have a complete remodel? Are they simply not selling? Or only selling if they have a primary suite? If they are selling, how long or find the DOM (days on market).

An agent *should* be able to help you with market data, average DOM and what is selling. However, most agents don't know jack about REI unless they are a REI. You should ask them what types of properties they own. Where they own, etc.

You might want to take a beat and seek out your next local REIA meeting. Rub some elbows. See if you can buy an experienced and successful flipper or private money lender (often these people are flippers too) a drink or lunch in exchange for some info. Same with investors. And, yes def get on wholesalers lists.

Finally, once you know the answers to these questions, then you buy at a discount to buffer any unforeseen problems or market conditions.