Flipping good in this market?

[Greg P.]

Hello, I'm looking to start to rehab a few properties in this market. I've heard it's tough to make money rehabbing properties. Would appreciate it if someone could explain if it is or is not tough. And also, if there was one advice in this business of rehabbing what would it be? Thank you!

[J Scott]

I've rehabbed and flipped a dozen SFH so far this year, so in my opinion, flipping is alive and well.

To be successful though, you need to know your market inside and out.

In what demographics, price ranges, areas, house types, etc are you seeing the most owner occupants buying?

For example, in my area, it's 3/2 brick ranch houses built between 1975-2000 in middle-income neighborhoods selling to first-time homebuyers using FHA financing with purchase prices between $100-140K. As long as I stick to that criteria for buying/selling, I can sell houses all day long.

I would spend 10-20 hours scouring MLS data to get an idea of what is (and isn't) selling in your market, and try to pick up on trends that might help you determine which areas and types of houses to focus on.

You might also find this useful:

http://www.123flip.com/education/flipping-in-2009-part-1