What are the best areas for SFH flipping deals?

Question

Lets says that there is no budget limit.

What are the best areas for SFH flipping deals besides the north side?

Lets say that there is a budget limt of $250,000.

What are the best areas for SFH flipping deals besides the north side? (The budget should cover both property value and rehab value)

Bart H. · Answer

@Ori Foyer  Have you thought about NW Indiana?  Lake or Porter county?

Hobart?  Valpo? Highland?  Crown Point etc?

You would avoid most of the goofiness of Illinois.

Andrew Holmes · Answer

@Ori Foyer

The best way to search for area is download all sales, pending and actives in the northside area from the MLS.

Then import them to Excel and do a double search for flips. Then look for spreads of a minimum of 120K and a profit margin of 35 to 45K.

Use the old 33/33/33 rule

33% for rehab

33% for carrying and selling costs

33%  for profit.

You will be able to identify area with the highest number of flips and then you can duplicate that in those areas.

Bart H. · Answer

I haven't lived in the area in many years, so I couldn't really tell you the condition of the real estate market.  My point was Lake and Porter county are bedroom communities for Chicago, they do, or did have a fair amount of steel and automotive parts plants.  So it was a little more blue collar, properties were generally a lot less expensive, and there were  a lot of older homes that I am sure would be prime candidates for fix and flip or buy and hold.

I no longer live in the area, and my wife and I personally only invest in properties near where we live (Dallas) but if I was still in the Chicago metro area, NW Indiana is a place I would look at as a real estate investor

Adrien C. · Answer

@Ori Foyer NW Indiana is on fire. A rehabbed house priced right is flying off the market. There's a lack of inventory (because you IL folks are flocking over). I heard we had a 10% increase in home values just last year.

Ori Foyer · Answer

@Bart

@Bart Hedgcock Do you know if there is a flipping market in these areas. How long a property is on the market in those areas before it sold?

What are the best areas for SFH flipping deals?

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