IS THE TIMING RIGHT FOR FLIPPING?

Question

NEW MEMBER - I am just getting started with real estate investing full-time. Is the timing right in the real estate market cycle to flip homes or would it be better to pick another strategy? Seems like we may be in between the peak and the tipping point? If so, does that mean inventory will rise and prices will be coming down? What strategy makes the most sense for this situation? Buy and hold even though that is longer term? So new to this all and it is a little daunting for sure.

Rich Baer · Answer

@Kim MyersThe resale market is like musical chairs these days. If you have cash and guts you keep playing until the music stops. When the music stops from this lofty level it will be ugly. Most likely it will be a political or foreign entanglement, rather than an economic issue that starts the lack of new buyer confidence cascade. If you have a backup plan you should be OK.

Jeff Filali · Answer

If you get good deals, priced right, and stay within a good budget, its always a good time to rehab and flip. People lose their butts whenever they don't get good deals, or are over leveraged and get stuck with a property longer then they anticipated and can't afford to carry it. In my opinion, you should never be over leveraged to the point where you couldn't carry all of your properties for a minimum of 90 days if something bad happened, and its probably better to have 6 months reserves or more.

James Wachob · Answer

@Brandon Diaz This coming May I'm hosting a property tour, and I'd love for you to make it!

Elizabeth Wilson · Answer

@Kim Myers, welcome to REI! There really is no right answer. The housing market is incredibly strong right now but there are always deals to be found. It really just depends on what you want. And @Brandon Diaz, is right: certain markets/areas don't fluctuate as much. If either of you are looking for deals in Memphis or rural TN, message me and I'd be happy to help if I can!

Brandon Diaz · Answer

No one knows when it will tip over. We can all guess. Just start no matter what. Focus on areas that are not at the top of the market. I buy in Chattanooga TN and Memphis TN and could care less if the markets goes back down.

Account Closed · Answer

Yes @Kim Myers I live in North County San Diego, But have done deals in OC and have syndicated some deals in Newport and Huntington, its a good time if you find a deal worth buying do it, nobody really know when market will crash people are paranoid, just make money while you can plus historically coastal communities here in Socal are not as affected in crashes, inventory is low if you find a good deal that numbers makes since go do it fast and move to next make money while you can you can, if it does crash buy cheap rent and fix and it 2-3 years will be back up, its just life so go and just do it, execute more, sure research and plan but execute.

Carlos Altamirano · Answer

@Kim MyersWhat a great question. The reason why I love real estate is that their is no good answer! Their are so many markets and difference strategies It can be over whelming! I don't know what is right or wrong, but this is how we have been staying active in the real estate world. You can start with wholesaling and literally wholesale a deal in any state that you choose. Last week we were able to wholesale a duplex in IN while living in CA and never walked the property. You can literally do that in any market. Some markers are good for rehab and some are not. Their are so many submarkets in Southern CA that you can rehab deals all year long, you just might have to drive a little further more. Their are still so many great deals in the Long Beach area suburbs and surrounding markets. Premium real estate could be over priced by now. We also help and show people how to use some of their savings to create streams of income through the purchase of multi-family apartment buildings in east coast states. CA might not be the best for cashflow, but it doesn't mean you can do it anywhere else. While wholesaling real estate digital through out the nation no matter where the market is helps us with a nice pile of cash, investing in out of state apartment buildings for steady streams of income is not bad either. Good luck! -Carlos

Joe Homs · Answer

@Kim Myers Welcome to BP. There is a location where like minded investors gather in Lake Forest, California every month that you should check out. You will need to PM me for the details, since Biggerpockets will not let me post that information here.If you would like to chat before then and talk about investing let me know. I am in Mission Viejo and can get together at my local Starbucks. Your ALL in cost is only a cup of coffee.I am currently flipping homes in Orange County and teach others how to do so as well. I started a wholesaling group and spend my Saturday mornings with them.I am looking for my next purchase at the court house steps, while I am working on a few more. Good Investing...Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, La Habra, Lake Forest, La Palma, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda

James Wachob · Answer

you bet! check out my profile page and/or website! You should also meet @Sean Tagge

Brandon Diaz · Answer

@James Wachob Lets exchange some phone numbers. Pm me