Picking a Zipcode and Market Research

[Patricio P.]

Hi BP Community!

I've been reading tons of posts and listening to the BP podcast and thinking a lot about my goals and plan for investing in Real Estate. My general thoughts so far are to get started with rehabbing but I understand there is a steep learning curve. I will try to find a mentor or someone experienced to partner with on my first few deals (and maybe more). Before I take that step I'm joining the local REIAs and want to learn as much as I can and formulate a general plan.

What advice would you give to someone who lives in Silicon Valley in the Bay Area when it comes to performing market research and selecting zip codes to search for deals?

I want to identify a target area to search for potential rehabs and could use your advice on best way to find which homes are selling the most and the fastest. From there I can get a good idea of the general ARV for those types of homes in those areas and work backwards (using the 70% rule) to find homes that meet my criteria.

I want to get as focused as possible so I can get some actionable leads. Thoughts?

Bonus questions:

1. Can flipping be a profitable endeavor in silicon valley, CA?

2. Does the 70% rule apply in hyper-expensive markets like the San Jose Metro area?

3. For those of you who are currently flipping houses in the Bay Area are you finding the deals via direct marketing, MLS, Realtors, or wholesalers?