Flipping homes in Los Angeles

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Hey guys,

I’m considering moving out to LA to get into flipping homes there. I’m coming with a budget of about 1-2m (including financing) I have contractors that can do all the work for me at a bit over cost (or at cost as partnerships). What I’m worried about is 

1. The volatility in the market and possible crash coming

2. The ability for a newcomer to get pocket listings and deals that can make good sense. 

3. Does the 1:1:1 formula work in LA?

Any insight will be appreciated.

[Joel Forsythe]

Quote from @Rick Albert:

Some of the flippers I know are making it work by using handymen (which has risks) or doing it without permits (also not recommended). You could also look into going to bigger price points to have your costs stretch further. For example replacing plumbing in a $1,000,000 home costs the same in a $3,000,000 home.

Rick’s comment above regarding “handymen” and not pulling permits is going to become an even more serious issue in CA with assembly bill 968 going into effect this July. I’m still surprised this isn’t talked about at all on the forums. I think it should be very concerning to many rehabbing/flipping out here, as the margins are indeed pretty thin as it is.