Analyzing a Market

[Todd Bright]

What are some key factors to look for when analyzing a market for flipping?  A family member of mine lends to flippers in Kansas City, MO and asked me if I would go there with him and flip a house.  Also, if there is a lot of competition in a market would it be better to look elsewhere are jump into the trenches?  Any feedback is greatly appreciated.

[J Scott]

Here are the 5 main things I look for:

1. Price Ratios Between Distressed and Retail Sales

2. Are There Buyers In The Area?

3. How Much Real Estate Supply Does The Area Have?

4. Are There Other Investors Active In The Area?

5. Market Indicators and Trends

The BiggerPockets Flipping book delves into each of these in more detail, include specific metrics I look for in each of those categories...