Flipping how to find off market deals? Good states?

7 Replies

I want to do some flips to get some cash to reinvest in rentals. I was thinking about  TX but i know the market there has been heating up the last few years don't know if deals with big enough spread can be found anymore at least near the N, Dallas area.  Anyone in TX want to chime in? 

 Can anyone suggest some other states where the prices are still relatively low but there is a demand for housing?

What is the best way to find off market deals? 

@Cynthia Miller Hey have you ever done flips before? I think everyone should flip close to home before trying to flip long distance. I see your from Michigan which certainly isn't a crazy expensive market like California or anything. I am almost positive you can find off market deals within an hour of your house, chasing after a hot out of state market is likely a mistake. You will run into higher entry costs, will have a harder time finding contractors which is difficult from any distance and then once you find them holding them accountable and checking up is harder as well. Not that this all can't be done but for someone without a team in place it is often much easier to build a team where you live and can visit the property. 

Hi Phillip, yes I've done a few flips I'm not crazy about the MI market personally. I've had a heck of a time with doing rehabs here. Ended up doing most of the work myself and its not my trade! Guys don't show up to work,  say they know how to do things, they don't really know how to do.  For out of state,  I would just come and camp out for a few weeks until the rehab is done then turn it over to an agent.

Ideally, would like to invest where the weather is not as brutal in winter and the purchase price is not super expensive. 

Care to share any ideas on finding off market deals? 

Where I start looking is zillow data:   https://www.zillow.com/research/data/ here you can download the purchase price to rent ratios which can help with rentals and BRRRRs but for general flipping any place could be done because its all about the purchase price vs what is the price of fully renovated houses are being sold in that area.

Originally posted by @Philip Williams :

@Cynthia Miller Hey have you ever done flips before? I think everyone should flip close to home before trying to flip long distance. I see your from Michigan which certainly isn't a crazy expensive market like California or anything. I am almost positive you can find off market deals within an hour of your house, chasing after a hot out of state market is likely a mistake. You will run into higher entry costs, will have a harder time finding contractors which is difficult from any distance and then once you find them holding them accountable and checking up is harder as well. Not that this all can't be done but for someone without a team in place it is often much easier to build a team where you live and can visit the property. 

 Would you care to lend some more detailed advice on how you go about obtaining off-market deals?

I find off market distressed properties several ways, first I physically go to judicial auctions 5 days a week. I also go to sheriff sales courthouse sales etc. I also drive for dollars as it's called, since i'm always out looking at auction properties I find a ton of for sale by owners. I also work with a few realtors and have been brought off market deals by them as well. I think the main point i'm trying to make you kinda proved with your statement. If your having a heck of a time where you can physically go manage everything imagine the stress if you were a plane ride away instead of a car ride. Managing flips is an art in an of itself, managing from a distance especially without a team in a nightmare. If you think moving cities is going to make contractors more reliable I am sorry to disappoint you, if they know you are out of state you will be there last priority.