Flipportunity Zones for SLO County - Part 2

This is a follow-up to the original post. For data on the county as a whole, please see the previous post.

Does more opportunity mean more profit? We answer that question (in part) today with a deep dive into potential flip opportunities in SLO County's South Region.

Not all flipportunities are created equal. I’ve highlighted Nipomo because it appears to rank top in this region for overall flip-friendly conditions. It is second for both Fixers Sold and Median Entry Price (Fixer Sale Price) while having the highest potential Mark-Up.

Arroyo Grande is another nice option, though the entry price is significantly higher. Pismo Beach and Avila Beach are both higher still, making them very difficult to enter for most flippers. Grover Beach and Oceano have nice entry points, though the mark-up is not nearly as nice as elsewhere in the county. Is it a coincidence that the two cities with the Highest Percent Fixers have the lowest potential mark-up? Hard to say... Either way be careful buying there, particularly Oceano.

But total opportunities and mark-up aren’t everything. For the most part, flippers are not going for high-end homes. Median market value is bread and butter for flippers. AND Nipomo has quite a bit of variety. Everything from mobile homes to acreage with animals to high-end golf communities.

Is it possible that the higher-end homes are skewing the numbers toward Nipomo? Let’s try and gauge competition within each city.

I’m hoping this isn’t too confusing, so please bear with me…

% Sold Above Asking AND % Sold Below Asking are for all the homes sold in that town/city since Jan, 2020. For example, Nipomo had a total of 1102 homes sold during that period, but only 386 sold above asking price (35.03%), whereas 541 sold below asking price (49.09%).

← Proximity to Median Price gauges the distance from Median Price for those sold Above OR Below asking price. For example, 35.03% of homes Sold Above Asking in Nipomo. The Median Price of those homes was ~$778k. (7.66% below the median price for the city as a whole.) Meanwhile, homes that Sold Below Asking in Nipomo had a Median Price of ~$920k. (9.26% above median price for the city.)

This means that Nipomo sees its highest competition below median price, and less competition for the higher end homes. Arroyo Grande is similar, though much less pronounced.

South Region Final Ranking

Nipomo and Arroyo Grande are the clear shining stars of this region. Grover Beach and Oceano have potential, but make sure you are comfortable with your spread when analyzing a deal in those cities. Avila and Pismo should be avoided unless you have very deep pockets.



Quick Note About The Data... I ran a similar style ranking for the 5 categories in the “competition” chart above. Nipomo and Arroyo Grande tied with the second lowest total, which is why they are both ranked 2 for Competition in this chart.