Investor · Southfield, MI · Member since 2014 · 14 posts · 13 votes
I am a landlord for residential property in Detroit Michigan looking to make a transition into real estate flipping. I need some insight, and possible mentor for some help. Any recommendations
Iowa City, IA · Member since 2013 · 39 posts · 10 votes
11y
I think in the last BP podcast they were talking some about making the transition from landlording to flipping. They were talking about how flipping can be a lot more risk. Although there is opportunity for large chunks of money which is nice. You may have come across it already but you might find the following book useful.
Iowa City, IA · Member since 2013 · 39 posts · 10 votes
11y
I think in the last BP podcast they were talking some about making the transition from landlording to flipping. They were talking about how flipping can be a lot more risk. Although there is opportunity for large chunks of money which is nice. You may have come across it already but you might find the following book useful.
Since I'm assuming you know how to find a good deal, the next step is to find out how to remodel. First of all, you need to see a LOT of real estate. Have an agent take you to see remodeled homes in the neighborhoods you want to flip, see what people are doing. Then, go into remodeled homes in neighborhoods in the price bracket above those, and see what they are doing. I like to do a few extras that you won't see with the competition.
Next you need to research prices in your market, find out rules of thumb on costs, like how much to tile, drywall, paint, etc. Contact contractors and find out what things cost. Find a house going through a remodel and speak with the owner/contractor. Costs are usually pretty similar job by job. For inspiration download the HOUZZ app, it's got millions of pics just search what you need.
Chelsea, MI · Member since 2014 · 46 posts · 11 votes
11y
I'd say the biggest thing is learning your target market inside and out. Knowing your numbers is key. Then look for ways to finance them-whether that be conventionally, or using HML's and private money. Once you build a relationship with some lenders or other investors to form partnerships, thats when you will really start to see that it is all very attainable. Best of luck!
I am a landlord for residential property in Detroit Michigan looking to make a transition into real estate flipping. I need some insight, and possible mentor for some help. Any recommendations
Investor · Southfield, MI · Member since 2014 · 14 posts · 13 votes
11y
well I own 10 rental properties now that I did rehab. All homes are in Detroit. I am kind of lost with the wholesale, bank lending, buying and flipping process. Landlording is cool but its a much slower building process.
well I own 10 rental properties now that I did rehab. All homes are in Detroit. I am kind of lost with the wholesale, bank lending, buying and flipping process. Landlording is cool but its a much slower building process.
Are you wanting to flip Detroit properties or are you open to the metro area?
10 good for you. Way ahead of me. What area's are those in? Can you just improve them enough and flip what you have right now?
Investor · Southfield, MI · Member since 2014 · 14 posts · 13 votes
11y
The value of homes in Detroit right now are rather low so its really just a rental city for the most like you stated. I think more outside of Detroit is better for flipping. What you think?
The value of homes in Detroit right now are rather low so its really just a rental city for the most like you stated. I think more outside of Detroit is better for flipping. What you think?
I agree. Would like to meet up with you and talk. Let me know if you have some time
Investor · West Bloomfield, MI · Member since 2009 · 358 posts · 306 votes
11y
@Philip Jones, you probably ought to look at flipping only in areas where homes are minimum $100K. Mainly owner-occupied areas.
J Scott has a couple very good books on flipping that are available through this site.
A big difference coming from rehabbing rentals, particularly Detroit rentals, to flipping in middle-class areas of the suburbs will be in the level of finish and quality of materials. You should get to know what is considered normal, nice and crappy in the area in which you're flipping. You will struggle to make money if you under-rehab or if you over-rehab.