Is flipping great in every market?

Question

Cody Stone · Answer

@Jonna Weber I have made the decision to steer clear of the really old homes. I know it can be tricky finding true ARV in the north end and have heard of some shoddy appraisals being done to inflate value. I like the charm of most north end homes, but I prefer finding some projects closer to where I live. I know the area better anyway.

After I thought about it a bit, the best flipping market would be one where prices are increasing. I imagine that could be a double edged sword if one were to fudge the numbers betting on property appreciating during renovations.

Jonna Weber · Answer

Hi @Cody Stone - It can still be done, for sure.  The challenge this year is finding the right buy, as you know.  If I were looking to flip in Boise right now, I might be looking in the West End of downtown,the Bench Depot area, or even the North End if budget allows (caveat:  I wouldn't venture into the North End unless you truly know old homes and City of Boise code)   Because comps vary wildly in each of these areas though...it is critical you study the market street by street.   If you can work in a market higher than entry level, natually you have less competition in the buy.

Brent Coombs · Answer

@Cody Stone, given that you don't mind at least one side of the equation being hard, wouldn't the ideal market for YOU be those deals where your abilities to value-add will be significantly greater than your cost? Cheers...

Andrew Syrios · Answer

When it's easier to buy, it's harder to sell and vice versa. Hot markets are hard to find deals, but when you do, it's easy to liquidate them. So, every market has it's pluses and minuses. That being said, flipping doesn't work very well IMO in markets where the purchase price is very low because your margins will be too small and any sort of unforeseen rehab expenses can ruin your deal.