Best markets to flip

[Arturo Borges]

What are the best markets to flip properties right now in the US? In terms of current home values.

[Andrew Johnson]

@Arturo Borges For what it's worth, it's why I don't and wouldn't flip out-of-state.  I've looked at deals that need rehab (on the buy-and-hold side) but my view on those is materially different.  Let's say I do have a delay in the rehab process, the unit is vacant for 30 days longer than I would like, etc.  Well, I have 20+ years to reap the reward of a major rehab.  That's 240 months of rents which is a really long timespan to spread out any financial hiccups.  If I have a 30 day delay on a flip that *should* have taken 90 days then my holding costs have increased 33% AND it's likely delayed being able to turn my money over into the next (subsequent) flip.  So, in my view, the pain of a suboptimal rehab process (since it's out-of-state) disproportionally hurts the flipper vs. the buy-and-holder.  

And, not for nothing, but when you do buy-and-hold you hopefully get a good relationship with your PM who knows good contractors, who can provide recommendations, who can pop by a work site, etc.  It's a little bit of a different risk profile that jumping into an unfamiliar market, with a new team, who will be referred to you by...well...maybe someone that you don't have a pre-existing relationship with.  And if the PM refers you to a cheap contractor that does horrible work, well, they have to live with managing those properties in the future.

But now I'm rambling...