Newbie from Duluth, MN

[Richard Peterson]

Hello Everyone... I'm really new here... just found the site today, signed up and this is obviously my first post. From the review of the site and posts I've seen so far it looks amazing... I have a ton of reading and learning to do and I'm sure lots of questions along the way.

Looking forward to learning and meeting some of you fine folks.

~ rich

[Brittany Kuschel]

@Richard Peterson

I really can't say whether I think increasing rates and more shoppers create a market favorable for flippers.  I do feel strongly that any market is favorable for investing, as long as you are willing to put in the hard work and find a deal.  Sometimes this means finding something off market, but not necessarily.  Presently in the Duluth area, properties which require work/significant updating/unique financing are still sitting, and I see properties every week that sell at a significantly reduced rate from the initial asking price.  

Your concern about purchasing a flip and selling it in a couple years is a very valid one. Given current market trends, I would highly advise against holding a flip for two years. At some point, I think our market will start to even out and if you overpay for something now or have holding costs of 2+ years, you may find that the property values have depreciated in two or three year's time and you could end up losing money, or worse...getting stuck with a property. If I were shopping for an investment property today, I would be looking for one of the following: something to fix and flip within 2 - 3 months, a house-hack (live in and build equity with practical and strategic upgrades that reflect a good ROI for the neighborhood), or renovate and rent in a low vacancy area (buy and hold for 5+ years).

Hope this helps!