Do you think Flipping is to costly in Naples area?

[Phil Hartten]

I find distress houses in a high end community...Naples, Fl and wonder if there are anyone of you that buy/flip these houses in the upper price range.

Some friends feel that the prices for these distress houses are way to high.  Some of these high end communities are booming and almost every house in any condition sells at a fairly good price and pretty quick to. Naples is great having some distress but the prices are high.

 I search for houses by driving around and it becomes easy to spot a 'distress' house and when they are vacant, I find out if the owners are gone and living in a far-off state or are ill and just have really 'divorced' themselves from the property.  

That works good for me so far...is that a good way that you use to find distress deals ?

Many of these distress houses are far behind on taxes and insurance and hoa fees, etc.  When I find this out I think it indicates a seller needing OUT.

So I ask  you, even though there are many of these houses in the higher price ranges, do you think the price of $300 K to about $1,5 mill is to high to make a profit ?  

The one i'm working on now is way up there at $800k and many friends say...way to high Phil....but I figure out the expected profit and I think it is almost better than a house under $200K.

 So I'm thinking about getting a hard money loan and picking up these higher-end properties and just farm out the fix work and skip the houses with really bad problems...but ones with normal problems I can probably get done.

I did 35 flip but I'm 70 years old ...in good condition....and I wonder, do you think the bigger projects will work out. If done here in Naples, the houses are selling well when priced right....about 40 - 60 days. I just got the report from MLS.

Naturally being just one man show and limited cash for the bigger houses, I have to be cautious now.  My friend in Ohio just did 51 buy/fix flip last year and figures he is averaging about $25K per.  Not bad as he has a realtor beating the bushes and great credit with hard money people ready for every good he finds.  And, he is a doctor....amazing guy.

The way I figure my profit is that I have my realtor friend search the data base and get a report with all the sales that closed in the past year and it shows sq ft and ask and close info.  Then I compare that sq ft to my intended and figure the buy price plus fix and carrying charges and come up with a probable profit.  

Do you do it that away?

Thanks for any response today.  Phil/Naples