Upstate NY Flipping 101

[Tolga H.]

Hello all,

I am looking forward to starting my first flipping project. I am currently located in Central NY (upstate) near Syracuse. I allocated a 140K budget for my first flipping project. My first question is: Which area around me do you think has the best potential for flipping?  I am looking for a place within a 5 hour driving distance. (the closer the better) 

And secondly, what general advice would you give as this is going to be my first flip? What should I look for as a beginner and how can I expand my chances of success? Any advice is much appreciated. Thank you very much! 

[G Brian Juk]

I have to imagine that if you’re near Syracuse, that would be the place to start. Large population, so plenty of renter base. loll

[G Brian Juk]

I’m doing my first one now, in Corning, and I can’t imagine doing one so far that I couldn’t just pop over and have a hands on learning experience with.
Just my 2¢

[Robert Zaccaria]

Be conservative when estimating After Repair Value, Rehab Costs, and project timeline/holding costs. It can be tempting to use numbers that make the project look like a home run. 

[Timothy Maloney]

@Tolga H.

We've funded 100's of flips (many in Syracuse) and all of our successful flippers share a few common traits:

1.  They buy right.   As @Robert Zaccaria points out above don't use aggressive ARV's to support an incorrect buy price. You will win/lose money on your flip when you buy it.

2.  They are fast.   In this market 1-2 months should be your goal as homes are still selling in under a week.    Expect that to possibly slow down this fall.

3.  The rehab fits the house.    If you are buying tile at $39/foot for a 90k property in Mattydale you are over-rehabbing.    

4.  Be very critical of your design choices.    If you don't know what is popular (or what is hot) be careful.   Incorrect materials/colors can cost you thousands.    

5.  Act fast - That property you are contemplating today will be sold tomorrow.    

6.  Ask for thousands more than your realtor suggests (withing reason).    Our flippers have enjoyed day 1 full price offers and/or bidding wars for the past 3-6 months.

7.  Do as much of the work yourself as possible.    Paying a professional painter/demo/landscaper to work on a 90k property may not give you the return necessary to justify the added expense.

There are 100 more tips but those are what I see our most successful flippers doing.    

Good luck!

[Tolga H.]

@Timothy Maloney @G Brian Juk @Robert Zaccaria 

Thank you all for the replies guys! 

 I am think of sticking with Syracuse as a start but in 2-3 months i am planning to move elsewhere that's why I am hunting for a top area elsewhere for flipping.  I am looking for a larger city I heard good things about Philadelphia, Pittsburgh and wondering about NYC as well.   

 I am curious How can I reliably calculate the ARV?  should I seek help from an estate agent if so do you have any contacts or other ideas you can recommend? Thanks a lot!

[Robert Zaccaria]

@Tolga H. Yes, an agent will be able to conduct a comparative market analysis for your prospective property. It's important the agent understands your vision for the flip so that they pick the right comparison properties. If this is your first flip, having photos of how you want the property to look will be very helpful. 

[Cory Finniss]

Tip Hill. Eastwood. Those are great areas. Highly desired , sidewalks for family's and a city feel. And probably the best parts of the city. That's where I work.

[Elise Bickel Tauber]

Hey Tolga,

Pittsburgh is a GREAT market for flips. Pretty solid numbers and some reliability with ARV as our market values don't seem to change too dramatically one way or another. You may not make as much per flip but your cost in should be a lot less then other metros and you can flip them quick and make a lot overall. Let me know if I can be of any help!

[Ronald Starusnak]

Tolga, I am a flipper in the Syracuse area. I am also a general contractor and property manager that deals in mortgage loan servicing and residential management. That being said; I think I have a great sense of where a good spot to flip is and where the bad spots are. Unless you are specifically looking to sell your flip to an out of state investor as a turn-key rental investment; you want to remain out of the actual city of Syracuse. 

No one is really looking to buy a house inside the city. It is mostly renters or those who have been in the city for awhile. The real areas to look are on the outskirts of Syracuse. Liverpool, Manlius, Fayetteville, Cicero, North Syracuse, Clay, Mattydale, Camillius, Marcellus, etc. 

Areas that have a higher population density with a mid-range house cost will sell the fastest and provide you with the best ROI in my honest opinion. The Cicero-North Syracuse area is an excellent example of what I just mentioned. Homes sell from $120-150k in this area and you can snatch an old home that is in need of many repairs for under $60k. It would be wise to partner up with a good wholesaler in the area. You should be looking for off-market deals as much as possible. Keep your eyes open, check Homepath.com Hudhomestore.com etc.

[Ronald Starusnak]

I just want to clarify, if you're flipping in the city of Syracuse. Most of your target audience are going to be other investors. Primarily out of state ones. 

[Mike Cumbie]

Plenty of good advice for the WNY market. The only change to @Timothy Maloney 's excellent post I would recommend is. Instead of 1-2 Months. I would suggest 90 days at a minimum. In this market the FHA buyers are pretty plentiful and they cannot enter into contract if the title has changed hands within 90 days. So in order to get the largest buying pool (to include FHA buyers) I would be ready to go on market on day 90. Earlier removes FHA buyers and you want them even if just to get into a multiple offer situation.

Good Luck!

[Bruce Corey]

@Mike Cumbie thank you for that very valuable information. I was not aware of the 90 day rule for FHA buyers.