Rehab and Flip - BaltimoreArea /Maryland

[Todd Gilfoy]

Hello everyone - I just partnered up with someone who has the same passion for real estate and investing like I do, as I can manage the project, and he can manage the rehab. I'm currently finalizing my business plan for 2016, and we are about to use our contractors and key contacts to start on the implementation of that plan. I have read multiple books and also attend REIA meetings regularly, but I wanted to reach out to the local and larger community on here to see:

*Where are you all finding the most success locating motivated seller leads and also buyers for those properties who can then become a consistent purchaser?

I noticed a lot of the previous blog posts were old and could be outdated. Thank you!!

[Russell Brazil]

Thanks for the recommendation @Trey Williams. @Todd Gilfoy depending on the price point and the quality of the flips you plan to do depends on the locations and methods of acquiring the properties you will use. In certain parts of DC, Trinidad, Petworth, Brightwood....most of your flippable properties are going to be purchased right off of the MLS. These are going to require a very good renovation...not what I call a "Home Depot Renovation." A typical flip in say Petworth will be to purchase for $425k, put $100-$125k into it and sell for $650k on a 3BR or $700k on a 4br. Make $75-$150k in profit.

At a very different price point, the strategy will be similar in much of Prince George's county in that you can buy right off the MLS. Buy for $100k, put $50k in and sell for $225k. Make $20-$50k in profit.

The key in PG county is that at that price point, there will be 20 offers all cash, no contingencies as the cheaper price points allow for more people to get in.  In DC with the higher price points, there may still be competition, but maybe 3-5 people competing over the properties.

Now as you move further out towards Baltimore, that is where you might need to get on some wholesalers email list. In Baltimore City you can also buy off the MLS, but the sell side of things is a bit rougher as nothing moves quickly in that market...so you may be sitting on a listing for 3 or 4 months possibly depending on the neighborhood.

Frederick County has some properties that are flippable you can buy on the MLS, and some are found off market. By and large properties in Montgomery County and Howard County do not sell at enough of a discount on the MLS in order to flip...so flipping in those areas takes a system of finding the properties off market.

Really the easiest method of finding properties for flips is identifying what locations sell on the MLS with a large price spread between a rehabbed home and a non rehabbed home...and Ive give you a few good locations on that.