Flippers - Analyzing your market strength

[Clayton P.]

I live in an area where the inventory levels are in the 11-13 month range. Yet there are guys in my market who do actively fix and flip, and in one case, a single zipcode supports one individual's entire business - & that zipcode is usually floating at 11 months inventory. AND, we're talking about rural-ish areas too. Seems so risky.

What kind of market indicators & metrics do you active flippers look at and try to stay within when you're evaluating markets? Days on Market? Inventory levels? 

I'm always thinking about stepping past the landlording & occassional wholesale deal & taking down a flip project.. But my local market makes me nervous.