how do you know if you should flip in a neighborhood? I see a property for 57k in a hip area the property was assessed for 124k in its current state. ARV could be 250k+ Its been on the market for 54days and has a ton of comps around it. The good thing about this property is that if it does not sell quick enough i could easliy rent it. It is a foreclosure. Now my concern is that its listed as a one bed one bath. Many houses list and many houses sell. What else could i do to determine if this is a good investment.
First I recommend running the property thought the flipping calculator here on BP. Then I would suggest looking for upside potentials e.g. Can you add an additional bedroom in the basement or attic(assuming it has either).
If your looking for further confidence I would try to partner and split profits with an experienced investor in your market who can help you vet the deals until you become more confident.
Best of luck to you!
Do you have a good realtor to advise you? I always like to leverage local knowledge before making a decision. If you don't, go on Zillow and look up the top selling realtors in that area. Pick the top 5 and call them. Ask them for comps. Usually 2 to 3 will call you back. If they all come back with the same info, then you have some good data to go by. And some good follow-ups to possibly sell it for you and become a long-term partner in that area.
Hope that helps.
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