Thinking about starting a spec house

[Chad McDaniel]

I've been having trouble finding houses to flip here in Lincoln NE. I have been looking for about 8 months. the buy and hold market is ok however the fix and flip is very tough. The majority of homes that I have found are priced where there is no profit or not much profit once it is fixed up. For example, I have seen many homes that are in neighborhoods that the home would be worth 100K ARV that need 20K in work and end up sellling for 75-80K.

I'm thinking about doing a spec house. The new housing market has picked up here in the last 6 months. This was not my inital goal when I set out on this adventure. However, what i'm doing now is not working either. Any advise?