Easy to buy, but can you sell? How do you determine?

[Mark W.]

Hi guys, I am having trouble setting up a criteria in which to follow for fix and flip properties. I am looking at low end properties. Purchase price under $25k that are in need of work.
What are your thought processes when you are looking at a property. How do you come to the conclusion that you could sell the property after its renovated? What factors do you take into consideration? I know this is really broad but I am basically trying to get into the heads of some seasoned investors (I know it may be a scary place:) ).

Maybe approach this as I have to; I am new to an area and I'm not familiar with lower end properties in general.

Thanks!

[Karen Margrave]

Mark W. No matter where you are, you have to get to know the market you're going to be working. Do comps on homes that have sold, for how much, what condition was the property in at purchase, what size was the house, similar area, lot, amenities, etc.? That will give you a pretty good idea of what value of propeties are. When you find properties that have been rehabbed and put back on the market, what are the improvements being made, and how much does that add to the value. How long are homes on the market? What are rents in the neighborhod, and is there a market for rental properties in the area (should you not be able to sell and need to rent out)

It's getting to know the area, and the product that you're marketing.