I am new to Biggerpockets. I live in San Jose, Ca. I want to try and find out more information about the idea of flipping houses in the Bay Area. I don't have any current experience flipping house, but do have an excellent contractor in my family that can do the work, and about $500,000 in savings that I can invest in this project. I would love to hear from anyone that is currently flipping houses in this area, and whether they would recommend someone like me getting into this field. Most of the information I have read over the last year or so, suggest that you shouldn't get into flipping in the Bay Area, as it very competitive and very expensive. However, I feel that if you can find the right house at the right price, then surely there is still money to be made.
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
1y
@John Slegg flipping is just a numbers game. The process is very straight forward if you have your team in place. I flip from $100K mobile homes to $2Mil SFR's. However, in the Bay area you may be flipping a $3M teardown in hopes of getting $15M at the end of the day. I just spoke with another investor in the area who is doing this.
Starting with flipping in real estate might not be good idea in HCOL area where everything is expensive and you pay lot of taxes. It only makes sense if you don't have any money to invest and need cash to build your portfolio.
Yes, it would make sense if you find the right house at the right price and do everything correctly to make good money - but probabilistically what are the chances you will do everything right in your first deal and will make money. Most people lose money in their first 4 deals in house flipping, do you want to take that chance of losing your savings.
Look for long term rental or fixer upper or even BRRR deals at the beginning. But that's only my opinion though- you might prove me wrong and make a home run in your first deal!