fix and flips still possible in southern california with todays market?
I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?
There are still opportunities but they will be harder to find and at higher price points. There is a lot of competition in CA and while a great appreciation market gone are the gold rush days of the last 10 years so the strategy has to get more creative. That's why I bought in the Reno, NV / Tahoe area. It's relatively affordable, strong tech and industrial job growth, landlord friendly, low property taxes, and not state income tax. It's all depends on your goals and how you can adapt your strategy.
Quote from @Arshiya Taami:There’s definitely good deals still just harder to find, and get connected with the right people! I have a few I’m looking into at the moment. If you want I can send them your way too to take a look at.
I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?
Quote from @Keith Mintz:
Quote from @Arshiya Taami:There’s definitely good deals still just harder to find, and get connected with the right people! I have a few I’m looking into at the moment. If you want I can send them your way too to take a look at.
I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?
that would be great! just send a message keith
Did you find any new info on flipping in SoCal?
Did you find any new info on flipping in SoCal?
I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.
Quote from @Corby Goade:
I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.
Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.
Quote from @Daniel Rabinov:
Quote from @Corby Goade:
I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.
Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.
Sure you can. I just finished one at 7.785%. Besides, there are no cap rates on residential real estate- you refi based on comps, not NOI.
Quote from @Corby Goade:Of course you can refi, but you wont be able to do a full cash our with rent covering your mortgage so you can keep rolling the funds to next project.
Quote from @Daniel Rabinov:
Quote from @Corby Goade:
I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.
Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.
Sure you can. I just finished one at 7.785%. Besides, there are no cap rates on residential real estate- you refi based on comps, not NOI.
Quote from @Daniel Rabinov:
Quote from @Corby Goade:Of course you can refi, but you wont be able to do a full cash our with rent covering your mortgage so you can keep rolling the funds to next project.
Quote from @Daniel Rabinov:
Quote from @Corby Goade:
I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.
Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.
Sure you can. I just finished one at 7.785%. Besides, there are no cap rates on residential real estate- you refi based on comps, not NOI.
That's odd, because I could have pulled an extra $35K out over and above my out of pocket expenses.
It's absolutely possible anywhere. If you don't think so, you are missing opportunites.
Yes , for sure . Inventory is low . SoCal is getting a lot older and most 20 plus old homes need updates and perhaps a value add addition. As rates increase there will be more opportunity .
Quote from @Arshiya Taami:
I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?
Yes, still very possible to find flips and flip properties in SoCal. You need to be exact on your ARV and know your rehab costs... That will lead to what you need to buy it for since every market is different pricing for repairs always change.
They're definitely still possible. San Diego is a VERY competitive market, so most of the "deals" are found by someone thats not you. However, that just means theres strength in the relationships. Focusing on the network can be a very powerful strategy in this market.
Quote from @Arshiya Taami:
I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?
I have 3 properties in SD for sale.