55+ Community - Fix and Flip?

Question

Hey BP

Has anyone flipped houses in 55+ communities? We've got a couple of 55+ communities, in nice area's (in the towns of Healdsburg and Sonoma) that have available inventory that look like they'd be very straightforward flips. Basically it appears that the homes simply haven't been updated at all since they've been built.

Given the towns there in, it seems like there could be good upside but I'm wondering if maybe there is actually limited upside to ARV based on them being 55+?

Obviously 1) there's a limited buyer pool. 2) some seniors are on a fixed income.

The flip-side is there might be enough seniors with funds who would want to buy a fixed up, modern house in one of these area's?

Any thoughts appreciated.

Thanks

David

Patricia Steiner · Answer

It can be a tough gig...first you have to be 55+ to buy there. And, if you don't sell it right away, you may be prohibited from leasing it for a year (based on HOA restrictions).  I recently (as a favor to a long time client who had bought it for a relative) sold a villa in such a community and I found that the nicer/higher priced properties were not the first to sell. Those investors were forced into continued price drops while units in inferior locations and price points sold more quickly.  While it was a nice community in Clearwater with all the amenities, it seemed to attract seniors who were very budget conscious.  But this is Florida...and we just refused to admit we're getting older.  Must be all that dang Vitamin D.