Trying to narrow down area for first flip

[Shanda T.]

Hi all,

I am so excited to get started on my dream of real estate investing! I live in Santa Cruz, Ca. Very expensive place to flip or buy LTR. I am trying to decide on another area close to me for that makes more sense economically. Looking at Modesto possibly?? Anyone else in my area that has started out and had success within a few hour radius? 

Thanks in advance~ Best to all

[Ramsin Jacob]

You're making a common misconception by thinking it is safe to go into a lower priced market like Modesto. With interest rates increasing, the people who are affected the most are those lower end buyers. Believe me, I have listings all throughout the Bay Area, from Oakland, to San Jose, to Redwood City, you name it. The more expensive the house, the more traffic I had. Wealthy buyers are not phased with interest rate hikes. Santa Cruz is not very expensive compared to the Bay Area. I have sold over $50m worth of fix/flips in the Bay Area. You need to just find a property with a large spread, minimal costs, since you are new in this business you need to find a house that only needs cosmetic repairs that'll take no longer than 2 months for you to complete and list on the market. Looks for areas with good schools. Inventory is extremely low right now, so if you find one 30% below ARV, jump on it.