What Parts of DC Area Aren't Tapped out for Newbie Flippers?

[Chase C.]

Hi, BP Members.

Long time lurker, first time poster here.  My brother and I want to team up to flip houses, and we have about 85K in cash to leverage to get started.  We thought we'd start in the DC area because that's where I live. Alternatively, we could do Houston, because that's where he lives.

At any rate, I met with a real estate agent today is was very discouraging about flipping prospects because buying distressed/undervalued properties in the DC area is so competitive that it's usually hard to turn a profit unless you're a realtor or a general contractor (thereby cutting one of your major costs). I have good contacts that could do some things at a discount and sell me materials at wholesale prices. But ultimately, I'm wondering if there are any areas in the Washington/Arlington/Alexandria areas where one can still find properties that can sell at a profit after rehab. If not, is the BRRR still an option?

Any tips or advice would be appreciated.

Thanks all.

[Chrissy Parsons]

@Chase C. Consider doing a mail campaign to find off-market leads as @Doug W. is suggesting.  A good target in a tight market is Seniors with 15+ year ownership and low Financial Stability Scores (FSS). 

These folks are likely ready to downsize or transition to assistance. Very often they have deferred maintenance and not done much updating. Combine this with the fact that their homes have appreciated since they purchased 15-20 or more years ago, and you will likely have room for a lower offer.

In DC, Arlington and Alexandria, there are 1,453 senior homeowners, 15+ years, home value up to $400,000, single family homes with Low FSS. If you add in Fairfax and Montgomery counties, the number available goes up to about 3,500.