Fix and Flip Market Analysis
It's about time I get involved on the forums here! I haven't made my first RE investment yet, but I'm determined to not succumb to paralysis by analysis...
I have been reading J Scott's book on fixing and flipping, and I've been simultaneously developing a business plan. When it comes to market analysis, I know the areas of my city (the nice areas, safer areas, school zonings, expensive areas, etc...), but I get overwhelmed by all the available data when it comes to determining my target "farm area" for properties to rehab. I want to utilize direct mail and bandit signs for deal generation, and I don't feel confident in my ability to specify a good target area to focus on. In an effort to efficiently spend my time and money, here are my questions:
1. Will my time be best spent pursuing real estate agents in various areas and picking their brains on sales trends (# of bedrooms and baths, sales price, exterior and interior finishes, age of buyers, etc...)?
2. How useful is Zillow, trulia, etc. in market analysis? I do not have my RE license (yet!), so I don't have access to the MLS. Are there other sites or resources that are particularly useful when doing market analysis? Which data is especially crucial?
3. Are there any red-flag indicators of markets to definitely stay away from or green-flag indicators of markets to definitely pursue?
4. Any words of wisdom from experienced fix and flippers about identifying opportunity in a market and where to start?
Thanks in advance! J Scott's book, this site, and the podcasts have been extremely helpful and I hope to be able to contribute myself soon!