What Is The 50% Rule for Finding Flip-Worthy Markets? 🏠 (via Easy Street Capital)

[Robin Simon]

What Is The 50% Rule for Finding Flip-Worthy Markets? 🏠

Ever wonder how the pros know which markets are good for flipping?
Here's the secret ratio that tells you everything...
Look at TWO numbers in your target area:

1. What move-in ready houses sell for
2. What distressed properties sell for

Let's say nice homes in your area sell for $200K
For a GOOD flip market, you want to see distressed properties at $100K or LESS
That's our golden 50% ratio! 💰

Note, you want to make sure to do some filtering and work – theres no 100% Easy shortcut.

Make sure you are:
✅Comparing similar houses
✅Looking at the Same distinct neighborhood
✅Making sure the properties have similar sizes and bedroom bathroom counts
✅Looking at Recent Sales Only – don’t stretch too far in the past (or this might be a frozen market)
✅And Finally: Pro Tip: Don't compare the highest vs lowest sales! Focus on AVERAGE prices for both types

If distressed homes sell for 50% or less than retail?
You've found a flip-friendly market! 🎯

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