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!!