Originally posted by @Jesse Waters:
A friend of mine and I keep trying to do a rehab/fix-n-flip in our local market. Unfortunately, every deal, so far, doesn't look good by the numbers. My partner for this venture is a contractor & I'd provide the funding out of cash or LOC, taking a 50/50 slip of the profits after the funding was re-payed.
In each deal we have looked at, we ask if the work required is worth the projected profit. Unfortunately, to this point it hasn't been. Our market doesn't seem to have the upside at the moment, even though it has plenty of properties in just about every price range and things seem to be selling at a decent pace.
For most of our projects to work out, we would have to be purchasing somewhere between 25-50% of the asking price.
I am finding the same thing - probably we need to start looking at ways to purchase before properties are on the MLS. Banks according to my agent seem to be releasing foreclosures slowly to keep the prices higher. They are also looking for owner occupants in my opinion who are willing to pay more since they are looking to make $ quickly. In the Washinton Post, I read an old article about flipping starting to end -- not sure I agree, but since I am a newbie - I kind of feel like you in all the "deals" I have seen so far in my market. Good Luck and I am a believer in looking for new ways to make it work.
