Where would you start if you have $100K in cash to invest? Looking for a market where competition is not as ridiculous as Northern California (I live in Silicon Valley). Any helpful tips will be really appreciated.
Thanks guys! :)
SE Michigan. #1 in the country according to a number of experts.
fix and flip is highly risky out of state even more so than buy and hold.. IMO the only way you can do it is with a close personal friend or family member watching over the process
Especailly at the price point your talking about
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Most people would say play it safe and buy and hold if you're out of state. A lot of people from California have been buying here in Dallas and Fort Worth. Especially hedgefunds, I've seen them buy at 83%+ sometimes, after those articles in Forbes and Money magazine came out about DFW.
If you can find the right lender, you could easily leverage your 100k to buy 5 rentals or maybe 6.
As far as flipping goes, I would agree it would be a bit risky to do it out of state. It is very stressful and nerve racking to not be able to see what's going on. I'd suggest if your day job allows it, to work out of state for 5 months and flip a house in TN, TX, NJ, FL or the like.
The best markets in which to fix and flip are:
1. The market you live in or can reasonably drive to (often, without getting burned out)
2. The market where you have an established, experienced team that you trained and trust (advanced strategy only)
Fix and flip is not about the market. It's about arbitrage. Success is almost entirely dependent on your ability to acquire property at a discount. This is an art and a skill. Your question might also be phrased as "where is it easiest to acquire" because competition in your area is making it hard. Just remember that ease of acquisition doesn't necessarily equate to success, or a good market for flipping.
Everyone has great points and I totally understand. Brian you are right, I am looking for an "easier market" to fix & flip where the price points are not as ridiculous as we have here in the bay area. This will be something I definitely will have to consider. Thanks for all the input.
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I recommend you heed @Jay Hinrichs caution on flipping out of state, at least without eyes on the ground that you can trust..
I believe @Mark Mynhier has some strategies to increase his success in out of state flips, and I think that includes some family on the ground if I remember correctly...
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