Distress assets and why its so much harder to find deals now

[Jay Hinrichs]

My wife just forwarded me the distressed property report from our Portlandia MLS system

.09% of all listings are short sales  Less than 2% are bank owned 

9 thousand listings.... that leaves only 180 bank owned in the metro 2 million population.

ERgo why I went into new construction a few years back..

[Cooper Bert]

Totally agree with this conversation.  Availability of distressed homes is at an all time low in my market.  In addition, the distressed that are available are priced to very shallow margins.  I believe this is due to the newbie flipper effect, also know has HGTVitus.  Too many people that don't understand the true costs of doing an actual flip bidding up the distressed properties.

At a more market micro level, it's becoming almost impossible to find distressed properties that can be renovated at an ARV that falls under the max value for a held rental property. In our market, the max sustainable rental is about $1300 and the associated property max value is about $150K. There are very few properties that fit into this niche that don't have significant defects (flood zone, train/highway adjacent, built in 1800s, etc.).

We too are moving into new builds of SFR with the purpose of rental & long-term hold/management.