First Flip, too expensive?

Question

Hello BP!

I'm in the process of trying to get out of analysis paralysis and actually jump in to some house flipping. Unfortunately homes in the DC area are ridiculously priced unless you invest in "at risk" neighbors in SE DC for example. Which leads me to my question...

Is it not recommended to invest outside of your area if you're new ? I could afford to flip homes in baltimore or richmond but they're both in excess of 2hrs away...

Does anyone have any recommendations for how to get my foot in the door?

Invest in DC with a hard money lender?

Invest in Baltimore or Richmond?

Give up ? (Just kidding)

Thanks for anyones input!

Ophelia Nicholson · Answer

I hope I don't come off as being rude because that's not my intent however asked the question and you received the solution to your too expensive problem.

@Ned Carey responded and said lots of great opportunity to invest across the bridge in PG county. I responded and said I'm a rehabber and I am located in PG county- I may not have been specific enough in that sentence but I have only invested in PG county and then you responded saying "Do you know if these are good areas to invest in".

It seems as though you have your mind set and made up as to what is offered in SE DC and PG county without any true knowledge of the area. I can assure you its not a warzone, there are parts of every county I'm sure in every part of the US where there are bad spots usually on the lower end but I don't think you can generalize the whole county. And even in those lower ends there are people doing flips- I don't but there are others who do with much success.

As said by Ned earlier there is a BP group that meets up in NOVA and there are tons of groups that meet up in area.

Ned Carey · Answer

I recommend against it. Investing from afar increases your risk, or it increases your costs to travel there to learn the market, or both. This is more true with flipping than buy and hold.  Finding reliable contractors when you can oversee them is hard. Doing it when you can't see what they are doing would be even harder.

There is probably 2 million pieces of real estate within an hours drive  of you. If you can't find a deal there, then you are not going to find  one going five hours away.

I would think you could find a lot of opportunity right across the bridge in Prince Georges county.  - Ned

Christina R. · Answer

@Jamal Atwell

-I feel your pain.  Anywhere in the "metro DC" area on either side of the river is essentially prohibitively expensive for investing - the REAL investing where you are buying way below market.  I believe there are deals to be had but they are hard to find and this area is competitive.

I think you'd do good in an area like Baltimore - it is competitive because the barrier to entry is lower than trying to invest in DC.  Start attending Meetups and REIAs in the Baltimore area and start networking, get connected with people that know the city and get those proverbial "boots on the ground" that can help you even though you are probably 50 miles - but with traffic 2 hours! - away.

Believe me when I say that networking is where it's at.  I am living it right now. If it wasn't for my finding the BP Nation last spring, it wouldn't be happening nearly as quickly (quickly, for me)- or at all.

Hang in there - just do NOT give up!!!

Check out via Google-

Baltimore REIA (Timonium)

MAREIA (Ownings Mills)

Baltimore/Washington Investors Meetup (Columbia)

The Real Deal Meetup (Arbutus)

Mark Cruse · Answer

@Jamal Atwell

Jamal, with any majoirty jurisdiction of color in the United States you are going to hear a host of negative things about it. If you are shaken about what people tell you about Prince Georges County, real estate may be too shaky for you period. My advice would be to consider the source when talking to others and get diverse opinions. I've lived in PG and DC all my life and know them both like the back of my hand. Most things I hear are inaccurate, fabricated or exagerated by people that are never here.  I'm currently searching for deals in DC, PG and Baltimore. All have ups and down..........

Ned Carey · Answer

Why?  PG county is pro growth. It is the least expensive area you can get close to the City.

There is a group of BP members that meet in NOVA. @Roger Lin Search the Happening and meetings forum.

Jamal Atwell · Answer

@Ned Carey and Ophelia Nicholson

Jamal Atwell · Answer

Ophelia Nicholson I understand your point, but my second question wasn't actually answered. Which is why I asked it. I'm not from the area I'm originally from Germany and I've heard negative things outsisde of REI of PGC. Which led me to have negative opinions about it. So I asked is it a good area to invest in because I DONT know. You're statement of "I'm a rehabber and I'm located only about 10 minutes from DC in PG County so as @Ned Carey mentioned there are tons of stuff to pick up that's in the under 200k bracket just outside of DC before you get to Bmore and Richmond." Doesn't really answer if PGC is a good county to invest in or not... Either way I appreciate your input in my growing experience.

@Ned Carey @J  Scott  Thanks for the advice. I'll be looking to start investing if PGC or PWC if I find the right opportunity.

@Roger Lin You did let me know about the group and I will be waiting for that evite so I can make it to the next event!

Phil Z. · Answer

In my opinion, two hours away is way too far.   I would consider 1 hour if it was a REALLY REALLY good deal.

Kirsten Sitnick · Answer

Hi, I don't think you can generalize an entire county as being a good area or a bad area to invest in. Neighborhoods, sure, but a whole county is going to have a variety. It's more about the specifics of the deal you're looking at...how much are you paying for the property, how much can you sell it for when you're done, how much work is needed, etc. @Jamal Atwell , why not look at some properties and evaluate comps and repair costs? Look at comps, are properties being sold to homeowners in the area, not just investors buying rentals?

---Kirsten

J Scott · Answer

As others have said, there is opportunity closer to home.  You have some very successful people here saying that PG County has some areas where you can be successful -- and I agree with them.

First Flip, too expensive?

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