Cheaper Homes or faster market?

14 Replies

My husband and I are wanting to move out of California and start flipping homes in a tax friendlier state.  Do you think it is better to move to an area where the houses are cheaper but might take a little longer to sell (for example: Ohio) or go to a place like Northern Colorado where the homes cost a little more but flip faster?  

Originally posted by @Michelle Apple :

My husband and I are wanting to move out of California and start flipping homes in a tax friendlier state.  Do you think it is better to move to an area where the houses are cheaper but might take a little longer to sell (for example: Ohio) or go to a place like Northern Colorado where the homes cost a little more but flip faster?  

 I think it would be smarter to move to Columbus, Ohio. The properties are cheaper than CO but also sell quickly.

keep in mind tax friendly just means a few grand per deal..  dont let the tax tail wag the dog..
flipping remotely is HIGHLY risky..  better to make a tad less but have more control and oversight

California and Colorado are mostly appreciating the Market. Ohio is mostly a cash-flow market (traditionally). But they have good both future appreciations as well.

Colorado is an extremely good market for flipping new construction though if you know which zip code.
But Ohio is giving you relatively better living quality than CO or CA.

If I would like to move out of CA, I will move to Alabama for instance.

@Michelle Apple

You can flip in almost any market, especially where the population is increasing. I’d agree with @Jay Hinrichs that it’s best to invest where you have a competitive edge, experience, or feet on the ground - especially when starting out. If you’re looking just for buy and hold rentals I think it’s a little different but similar.

Originally posted by @Jay Hinrichs :
keep in mind tax friendly just means a few grand per deal..  dont let the tax tail wag the dog..
flipping remotely is HIGHLY risky..  better to make a tad less but have more control and oversight

 Valid point

Also if you're a professional flipper, I believe CO is the way to go because there's serious made that can be made.

But if you just wanna do multifamily landlording and higher quality living while having other W2 jobs then OH is a good option. 

Do both if you can :)

My advice: move wherever you want and invest remotely where it makes the most sense.

In regards to flipping in OH or CO: For the sake of this answer I'm just going to use this comparison as a proxy for "high appreciation market" vs "better cash-flow market". It depends on your investment goals. If you are trying to make as much return through flipping as quickly as possible, clearly the high appreciation market is better. If you're trying to establish a long-term strategy and potentially move into rentals, the better cash-flow market makes sense. I will say, as someone who used to live in Columbus, Columbus is in a unique position in that it is appreciating but the market isn't too mature to cash flow. So maybe you start flipping in Columbus and then do some BRRRR or buy-hold rentals if that interests you.

@Michelle Apple Columbus and Cincinnati routinely hold the top spot for least days on market in the US...Columbus is intentionally underbuilding and 40,000 new homes short of demand...more like 70,000 affordable units short of demand. Renovated "flip" properties are becoming the majority of the inventory in several neighborhoods...your biggest limitation here is keeping pace with demand...you can flip 100 homes a year and not be close to current demand...

Hey @Michelle Apple Great content and information in this thread for sure!  I observe in Toledo and Columbus and overall the markets are nicely compared.  Overall, the midwest is a very healthy market for investors etc too!  

Hey @Michelle Apple Great content and information in this thread for sure!  I observe in Toledo and Columbus and overall the markets are nicely compared.  Overall, the midwest is a very healthy market for investors etc too!  Sending you a PM now :)

@Michelle Apple I agree with the advice here, but there is one point that is missing... your secondary exit plan. Where do you want to be investing should the market turn and it no longer makes sense to flip? Hopefully, you will see the shifts well ahead of that point and you can exit out of your projects without much impact. However, where do you want to be should you have to hold the asset instead?  Always have a 2nd or 3rd exit plan.

Get comps and DOM from a Realtor to help with your decision making - also get estimates from a lender first to make sure the market isn't tertiary and non lendable.