I am mid flight of my very first flip and it's going well. I bought very cheap and it appraised higher then I expected so needless to say I was pretty excited. I'm looking for some brutal honesty here guys. I should be able to clear 60k on this flip and I'm considering getting out of California for a multitude of reasons. I'm looking into places like Cleveland OH or Rochester NY for their very reasonable cost of living and real estate prices. Would it be worth uprooting and going some place cheaper with the kind of money I hope to get from this flip? And I also have a potential business partner as well so I have the possibility of getting into a fair size deal if I end up in one of the places I mentioned above. My current goal is to get to 100 doors and it seems much more possible elsewhere. This has been racking my brain for the past month so any and all pieces of advise will be greatly appreciated, thanks again everyone.
Congrats on the flip! NY is tough, still has very high taxes and Rochester gets hammered with snow during the winter months so that’s another battle. I currently am located about 15 minutes from a nice little town with great schools but the school/property taxes kill any hope of high cash flow, so make sure to really get the most up to date numbers. Best of luck!
I moved to Columbia South Carolina from Montreal and was able to sell my condo in MTL and turn it into 5 houses in under 2 years. Going from expensive to cheap market if you can keep your same salary and cash out on a real estate investment is a great way to get momentum in my opinion. That being said, I sure do miss Montreal! ;)
@Adam Noble , I'm looking to do the same exact thing, only difference I'm going to bunker down here in NY for at least another year, born and raised lower NY its gotten very expensive all over the state. My goal is to flip 6-10 houses before I head out, I want the experience to come with me and a good chunk of change to continue on with my venture. HRL are difficult to get with little experience so I figure if I can still get the deals, then I hold out for a bit longer build a good rep with the HML this way I know I continue to use them when I do make the move. Rochester does get a good amount of snow and I'm sure its starting to get pricey up there as well, but best of luck to you
Cheap is cheap for a reason. If I were going to be looking for another market to invest in (which I am) it wouldn't be anyplace with steadily declining population. New York has been in the Top 3 (typically in first place) for net population loss for the last 5 years - and that's despite an always large net increase in the NYC area.
A lot of the folks I know who invest in the Northeast are looking for different markets while people from different markets look here.
Ask the deeper question: why 100 doors? Looking for that magic $100/month/door X 100? I, personally, would rather make $10,000/month with 50 doors, or 25 doors than 100.
If you can take your $60k and reinvest it in a market you have a competitive advantage in, you'll probably do a lot better than investing it in an area that is already heavily populated with investors who live in their market.
@Adam Noble Welcome! Well, you and several hundred others on here ask the same question regularly. Me included. Family, do you have school aged kids? Is wife /partner ok with uprooting? If you dont mind moving then give it a whirl. Hit a desirable and tax friendly area and go for it. Only way to find out is to take the "Nestle Plunge"! My other thought I was introduced to by @Jay Hinrichs was the money and real estate in California is second to none. I dont remember his exact words but point is flipping in Redding and making 60k will build wealth as do buy and hold appreciation in California. Jay has always made me think about not chasing the cheap fixer route vs flipping in a more expensive area such as California/Nevada/Washington etc. and this includes buy and hold appreciation in the same markets. With all that being said I may be heading to Alabama to try what you are talking about and establish residency for 6 months and 1 day (or Florida/Texas). I hope this makes sense.
Thanks everyone for the input!!! I very much appreciate it!
It just seems like I'd be able to grow my portfolio much faster in a different more cost effective area
If I was 35 years younger and divorces were not so expensive ( kidding, we both have huge family ties in our area ) I would move and do the mid west thing. I think if you have good practical knowledge about construction / property management it could be a home run. Maybe just go build a portfolio and turn it over to a manager and head back " home ". I'm old, have family obligations, real estate, fishing holes, and friends so i'll just compete from afar with my " team "
I grew up in near Rochester and recommend you not move to NY. RE prices arent too bad in the Rochester area, but as mentioned the taxes are bad and getting worse (both property and income). I have family paying 4-5% of property values in taxes every year.
@ Adam we live near you and are contemplating the same thing. IMO, the purchase price point for flips in the Redding area is getting unreasonable. Too many people in the market willing to pay too much. We first thought we'd use flips to capitalize our investment pool for purchasing buy-and-holds but it's getting tougher to find flips in this area that will help us build our capital pool quickly enough. Plus, we want OUT of the northstate - badly! As soon as our youngest graduates high school next year we're moving east. We're focusing on Idaho both for flipping and buy and hold. Our pool of cash goes much further there. And you'd be surprised at how much growth, investment, jobs and Californians are migrating to Idaho.