MLS Strategies in locating properties

[David Beard]

I've recently gotten my agent's license and have been reviewing MLS data with an eye toward picking up good flip properties. For those of you that use the MLS for this purpose, I was hoping that you would share some of your MLS searching strategies. I assume that most MLS systems have similar data and functionality. The software vendor for our MLS system is Rapattoni , and I haven't even been to the training class, just test driving at this point.

My initial focus was to identify good flipping neighborhoods by looking for aggregations of MLS "consumer" sales/listings/pendings (not lender or short sales) in the past 9 mths throughout my broad target areas, in the exit price range I wanted to focus on initially (100-150K). I can view these sales easily on an interactive map. Searching for "renovated", "renovation" or "new" in the MLS description can help identify where flippers have sold (or are listing) a property. Identifying the active flippers and where they're working is obviously good information. You can see what listing agent they are normally using, and then search all of that agent's sales/listings/pendings to identify the location of properties that they have marketed for that flipper. Usually a quick look at the photos of the kitchen also tell you if it's a flip.

Once the neighborhoods have been identified, you can use a polygon mapping tool to enclose the neighborhood on the map, then you can add icons to show all *other* current sales/listings/pendings (these would be your distressed sellers: lender/corporate owned, short sales, and estate sales). The current listings in this distressed group would comprise your candidate pool. DOM/CDOM and property condition would give you a rough idea of the list price discount you might expect.

Of course, I'm only focusing on MLS usage for this question, and not other marketing techniques to find deals. Any ideas on how folks use the MLS data/tools in finding their deals would be greatly appreciated.