Need help choosing farm area for short sales
Hi all,
I don't see very much discussion in the SS forum when it comes to selecting a few farm areas. I could use some tips or suggestions for this. I intend on retailing these homes, so won't be looking for too much rehab.
I need to find a low DOM however what is considered low in this market? Under 120 days? Under 90 days?
Since these will be retail most likely to families, I will look for lower crime and better schools. Is there such a thing as too nice of an area that could make it more difficult to short with the banks because the surrounding value?
Should I look at the median home price versus the average income? If so, what ratio should I look for?
Is there a "magic" number for arv? For example, homes that arv at 250k or 300k retail best?
Also, what % home value decline should I look for in the past year? There are areas where the average decline was 7% and areas where it was 15%. All areas saw solid growth (ie home sales) in the last 6 years and have near 10% unemployment, so there are plenty of underwater people who are very unfortunatey behind on payments.
How large should the farm area be?
Am I placing too much empasis on the above? For example, are your parameters more loose and you just do a pre-NOD search on several zip codes?
I am located in the Chicagoland area, so I can go 30-45 minutes in any direction and find almost any type of community. Perhaps that is where my hesitancy comes from. There are alot of options here.
Thank you for your suggestions!!
Danielle