How Finicky are Investors?

[Julian Allen]

When it comes to areas/zip codes to invest in, how picky are most investors especially the fix and flip investors? Is it all about the zip code or all about the returns? I have had a property under contract in Baltimore Morrell Park are where based on the CMA’s ARV it would give an investor a profit potential of about $60k if they put up $115k which includes repairs/wholesale fees/purchase price. The neighborhood has been viewed as stable by some of the investors on BP but it seems like investors in other online local social media forums seem to shy away. What are investors really looking for these days? Are they all chasing the same thing and willing sit idle while looking into over-saturated markets with little to no inventory?

[Tim Youse]

Well that explains it - those houses are the exception over there so that would explain to me why some investors would shy away from a deal. Even with comps, it's a risk IMO, since there are so many properties of lesser value over there. Mid 200s would put home buyers in a more desirable neighborhood, so that narrows your buyers pool on the front side and the back side of the deal, and it seems like the numbers wouldn't work for investors that plan to buy and hold/rent it out.