flips Cleveland Ohio

[Itay Heled]

Hello BP members & Happy New Year!

I am considering flipping SFH into turnkey rentals with a local partner.

rough plan is the following  :  

1 purchase price 20-35k 

2 10-20 k rehab 

3 place a tenant and  sell for 60-85k  for out of town investors  ( 3 month turn around time.) 

any locals with expirience  doing this recently  who can share the demand ,the  challenges, and current market condition ?

Thanks!

[Jad Boudiab]

@Itay Heled  Everyone has valid points here. Won't be easy, but here's how I would go about this.

Like @Federico Gutierrez mentioned, 20-35k purchase price will be tough to find, but it is do-able at auction. I caught a rare find on Raymond St. last year for $18,000, all in around $44,000, resold to an owner occupant at $63,000. This is near impossible to find now in the Greater Cleveland market.

Is the $63,000 figure achievable selling it to an investor? Possibly. Is $85,000 achievable? I'll side with @James Wise for once and say that's near impossible unless the buyer is completely unaware of the fact that there's a POS compliant $63,000 house around the corner that will rent for just about as much.

Out of the 161 MLS homes sold in Maple Heights in the last 6 months, 37 sold for over $80,000, none are properties we can pickup for $43,000 all in, and (guessing) none went to investors. Here's the breakdown - 22 were FHA financed, 9 conventional, 2 VA, and 3 CASH.

For the same amount of headache, I would ditch the turnkey resale plans and small margins, to partnering with your local connection and reselling to HOMEOWNERS. You can be in for $85,000 and resell around $120,000 on some streets. You'll deal with the top bracket of buyers in Maple Heights, but FHA financing should cause you no issues if the rehab is proper.