most efficient way to weed out potential flip/rental properties

[Nick S.]

i'm looking for the forum's advice on the most efficient/effective way of weeding out properties. i'll be living in the property for at least a year. while i live there, i'll be living in it (so property can't be a complete rehab), fixing or improving the property, and then either flipping or renting out the property. 

i've looked at about 18 properties the past 3 weekends (i just started 3 weeks ago). the 18 properties were chosen based on 2 broad criteria: 

1) based on pictures, description, and google street view, choose properties close to the metra (in illinois), in a location with a great high school (>=8 score), and in nice(r) neighborhood.

2) look at zillow for an idea on property values in the neighborhood so that i'm not buying one of the most expensive houses in the neighborhood. if i feel the house i'm looking at is somewhat undervalued because it needs work and there's some room for me to flip, then house passes.

this criteria has helped me weed out 100's of properties, but takes me a bit of time.

i'm curious, is this a good start or are there other ways that the full time/professional investors use? i'm new to this and decided it was finally time to get my feet wet. thanks.

[Patrick Daniel]

Originally posted by @Nick S.:

@Patrick Daniel my agent turned on automated mls emails based on the neighborhoods i'm targeting. other than that, no other criteria is being used. so if i already have an agent that accesses the mls, how does that help me get good comps and arv?

i have noticed the days on market, but quickly found out that has no bearing on how i negotiate price. no sellers so far are desperate enough. interesting note on the price per square ft. didn't even think about that but as i compare different properties in the neighborhood, that'll help me with a consistent value. 

 When you find homes that seem like good flips, have your agent run a certified market analysis on the home with comps in the same area of the same size with the same amenities. 

The only price that matters is the price that makes sense for you to make a profit that works for your numbers. If the seller doesn't want to sell it for that, then it is not gonna be a deal that works for you. 

I have heard several investors say that they only get one out of every 95-100 offers they make accepted, I dunno how accurate that is for your area, its a little extreme for my area, but good deals will likely be hard to come by. 

For long term, I would look off market and try to get on as many buyer's lists a possible. Generally the deals there have more room for profit.

Best of luck.