How should one choose where to flip properties?

Question

Hi All,

I'l looking to invest in flipping properties yet dont really know how to focus on the right State / County as it seems like options are endless

Are there any guidelines / thumb rules that helps narrow things down?

+ what will be a reliable source I can use to find the right people such as contractors / wholesalers / agents that can help in this kind of process?

Thanks,

Ibn Abney · Answer

@Shachar Hess I think disregarding entire states, especially where the majority of the US population resides, is a mistake. Every market, especially large metro markets like Chicago, New York, and California have several sub-markets and not all sub markets are the same.

Also, the term "overpriced" is relatively to different investors.

The true goal of a flip is to move it as quickly as possible and the large markets make it easier to do so. Also, finding quality contractors and skill workers are easier, especially if you are long distance.

BP is a great place to find all contacts needed. I would look for large metro cities, with large populations for a long distance flip. Look for a good school district, low crime, and a robust local economy.

Good Luck!

Account Closed · Answer

I would stay away from overpriced areas like Washington, Oregon, California, Illinois, New York - that is, anywhere along the coasts. Best places are probably Arizona, Texas, Idaho, any state in the midwest but not Chicago or Detroit.

What are you trying to accomplish? What is your budget? What is your time frame? Reliable people are found locally, in each market, there real isn't a way to generalize.

Sheila Arca · Answer

Hi Shachar,

@shachar Hess Right now the rust belt is a safe bet, i.e. Pittsburg etc.  For the most profitable flips, Maine is frequently mentioned, but is a bit pricey. You'll want to get boots on the ground in whichever state you choose, meaning your contractor, agent and property management co., and it's usually best if your going to flip in unfamiliar areas that you stick to one area and get to know it well, vs jumping from state to state, that can be difficult always gathering teams in every state. A good rule of thumb is to make sure the metro has at least 250k population and is growing, and that the property is located in a B-C+ area (less headaches down the road), that the schools are good, and that unemployment is at a minimum. Most of this info is found on Trulia, a great pay-site would be Neighborhood scout just to have a good source to check any properties you're getting serious about. Hope this helps.

G

@Shachar Hessundefined

Bob Floss II · Answer

@Shachar Hess If you don't know where to invest, maybe focus on finding a person or team that is doing well rehabbing properties and seek a partnership or offer yourself as a hard money lender. There are opportunities in every city and state if you are working with the right people.

Shachar Hess · Answer

@Sheila Arca Account ClosedThank you very much to all of you guys... you sure gave me some stuff to think about before I jump in.

Do any of you invest in a way of flipping houses and can recommend on an area based on personal experience?

Thanks,

Ibn Abney · Answer

Account Closed I totally understand where you are coming from and believe your intentions were good!

I wouldn't start long distance flipping personally, however I do believe it is possible with the internet and technology to flip long distance. I work full-time and spend little time in physical properties. I am starting to feel more comfortable investing long distance if and when I find boots locally. Which is of course the biggest hurdle.

Acting as a hard money/private lender is a form of long distance flipping to a certain degree. Partnering, crowdfunding, syndication, or buying a plane ticket and flying out to the unit, etc.

Also, my assumption is if you want to invest in the US from an international home base you have some $$$ saved because traditional loans are much tougher.

Account Closed · Answer

I figured he was actually asking how to be profitable, safely, long distance. Doing a Fix & Flip long distance in an expensive market for the first time is "disaster thinking." Unless he likes drama.

Ed Emmons · Answer

I have done 50 or so and have 4 in process now in Maine and I have also done many in CT. What are you looking for exactly?

Levi Bennett · Answer

Boy this is a loaded question. I would really start by narrowing down your long term goals. Are you trying to make a quick buck or are you in it for the long haul? That one question alone should narrow down considerably the types of markets you want to be invested in. There is a market for everybody in real estate, it really depends on you.

Kirk Hanson · Answer

Do your research.  Charlotte, North Carolina is one of the top markets to flip houses in the United States.  If I can help, shoot me a message!

How should one choose where to flip properties?

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