Market Opinions for Fix&Flip
Hello All BP Members,
I've got plans on doing some fix & flip in Desert Areas, CA. Especially in Palm Desert. But also neighborhoods such as Rancho Mirage, La Quinta, Indio, Indian Wells, Coachella Valley, Palm Springs. I will move to Palm Desert, CA so that it won't be a long distance rehabbing.
I'd like to learn the opinions of seasoned real estate investors for rehabbing and selling properties in these areas. And also do you think is this a good time to buy distressed houses in Palm Desert?
So something to keep in my those markets took a long time to come back with appreciation. It all about supply. I think you need to analyzing your buyer in those areas and the demo graphics.
Adding to what @Jo-Ann Lapin said ... jobs and the economy drive changes in home prices. If you know of something that will create more jobs in one or more desert areas, that would increase the attractiveness. "Recreation" property values are very sensitive to the economy. A major example would be Las Vegas. When the economy turned down, you could buy a home for less than it would cost to build one. As soon as the economy picked up, home prices climbed dramatically.
@Emre Görü let's connect some time. I am working with large vacation rentals in the area, and am considering some flips as well. Or even better a flip that would make a great rental as a backup plan.
@John D. Actually I have not moved to Palm Desert yet. My plans are for the end of this year, right now I'm educating myself and getting as much information as I can. By the time I move to Riverside I will contact with you. My plans are almost the same with yours. Plan A is to flip, if can't sell turn it to vacation rental as plan B, or long term rental as a last resort.
@Jo-Ann Lapin & @Jeff Keller thank you very much for valuable suggestions. I will definetely take your suggestion into consideration.
@Emre Görü The above comments regarding the Coachella Valley market are pretty accurate. Right now the market is healthy and I can tell you that there is pretty strong competition for any type of distressed property. Multiple offers and they are going quick. This, of course, applies to houses on the MLS. There are some very nice areas of the Valley and some that are not so nice, like any other area. The area also has neighborhoods that are very solid for working families that serve the region. It's a beautiful place.
@Rob Moran As you said the market is very competitive and hard to find properties to fix. I like the desert areas pretty much. Especially the high-end areas are very beautiful.
This leads us (investors) to find creative solutions and value adding features to the properties. I wish you the best with rentals. Maybe we can meet up by the time I move to Palm Desert.
@Emre Görü Sounds good.