How should one choose where to flip properties?

15 Replies

Hi All,

I'l looking to invest in flipping properties yet dont really know how to focus on the right State / County as it seems like options are endless

Are there any guidelines / thumb rules that helps narrow things down?

+ what will be a reliable source I can use to find the right people such as contractors / wholesalers / agents that can help in this kind of process?

  

Thanks,

Originally posted by @Shachar Hess :

Hi All,

I'l looking to invest in flipping properties yet dont really know how to focus on the right State / County as it seems like options are endless

Are there any guidelines / thumb rules that helps narrow things down?

+ what will be a reliable source I can use to find the right people such as contractors / wholesalers / agents that can help in this kind of process?

Thanks,

 I would stay away from overpriced areas like Washington, Oregon, California, Illinois, New York - that is, anywhere along the coasts. Best places are probably Arizona, Texas, Idaho, any state in the midwest but not Chicago or Detroit.

What are you trying to accomplish? What is your budget? What is your time frame? Reliable people are found locally, in each market, there real isn't a way to generalize. 

@Shachar Hess I think disregarding entire states, especially where the majority of the US population resides, is a mistake. Every market, especially large metro markets like Chicago, New York, and California have several sub-markets and not all sub markets are the same.

Also, the term "overpriced" is relatively to different investors.

The true goal of a flip is to move it as quickly as possible and the large markets make it easier to do so. Also, finding quality contractors and skill workers are easier, especially if you are long distance.

BP is a great place to find all contacts needed. I would look for large metro cities, with large populations for a long distance flip. Look for a good school district, low crime, and a robust local economy. 

Good Luck!

@Shachar Hess If you don't know where to invest, maybe focus on finding a person or team that is doing well rehabbing properties and seek a partnership or offer yourself as a hard money lender. There are opportunities in every city and state if you are working with the right people.

Originally posted by @Ibn Abney :

@Shachar Hess I think disregarding entire states, especially where the majority of the US population resides, is a mistake. Every market, especially large metro markets like Chicago, New York, and California have several sub-markets and not all sub markets are the same.

Also, the term "overpriced" is relatively to different investors.

The true goal of a flip is to move it as quickly as possible and the large markets make it easier to do so. Also, finding quality contractors and skill workers are easier, especially if you are long distance.

BP is a great place to find all contacts needed. I would look for large metro cities, with large populations for a long distance flip. Look for a good school district, low crime, and a robust local economy. 

Good Luck!

 I figured he was actually asking how to be profitable, safely, long distance. Doing a Fix & Flip long distance in an expensive market for the first time is "disaster thinking." Unless he likes drama.

Account Closed I totally understand where you are coming from and believe your intentions were good!

I wouldn't start long distance flipping personally, however I do believe it is possible with the internet and technology to flip long distance. I work full-time and spend little time in physical properties. I am starting to feel more comfortable investing long distance if and when I find boots locally. Which is of course the biggest hurdle. 

Acting as a hard money/private lender is a form of long distance flipping to a certain degree. Partnering, crowdfunding, syndication, or buying a plane ticket and flying out to the unit, etc.

Also, my assumption is if you want to invest in the US from an international home base you have some $$$ saved because traditional loans are much tougher.

Hi Shachar,

@Shachar Hess  Right now the rust belt is a safe bet, i.e. Pittsburg etc.  For the most profitable flips, Maine is frequently mentioned, but is a bit pricey. You'll want to get boots on the ground in whichever state you choose, meaning your contractor, agent and property management co., and it's usually best if your going to flip in unfamiliar areas that you stick to one area and get to know it well, vs jumping from state to state, that can be difficult always gathering teams in every state. A good rule of thumb is to make sure the metro has at least 250k population and is growing, and that the property is located in a B-C+ area (less headaches down the road), that the schools are good, and that unemployment is at a minimum. Most of this info is found on Trulia, a great pay-site would be Neighborhood scout just to have a good source to check any properties you're getting serious about. Hope this helps. 

G

@Shachar Hessundefined

@Shachar Hess

home advisor might be a good place to find your contractor, you can also use that site to get costs in the property city for high end/low end costs that a contractor should charge for whatever project you need done. Definetly interview the contractors ((yes more then 1)  and ask them all the same questions, if one is saying something different, kick him to curb. Same goes with agents and property mngrs.

Find a partner that has done many flips and has a lot of experience. Make a win-win agreement. Depending on what you have to offer there may be opportunity to form a long term relationship. Start with one property. See it to completion before attempting a second one. Learn all you can from each experience. Maybe after you have done 10 - 20 in the same location, you may have enough knowledge to do one on your own. As far as location, experienced investors are flipping in every market. It will just depend on how much capital you want to have tied up. Large cities in A neighborhoods can tie up 10 times the capital as rural areas. My suggestion is to think of this as a 5-10 year plan and learn with small amounts. If you are looking for the big numbers just do more volume of deals but start slow and view it as educating yourself and just keep getting better.

@Shachar Hess

Hello sir!

Looks like you've got a lot of solid advice here.

Are you planning on staying in Tel Aviv? Or are you considering moving to the location in which you plan on flipping?

I would certainly recommend the latter of those two scenarios if possible, though it won't necessarily be a requirement.

I definitely agree with @Ibn Abney that you'll want to be in some of the markets with a higher population count, particularly where you have an influx of people and business continuing to move there. If the taxes are low, and the laws favor business and investors, even better. We're currently buying all over the state of Texas (and we have been for the last decade) which I believe would fit the majority of the criteria that I mentioned above. However, we're also buying all over California, Florida, Tennessee, Georgia, North Carolina, and more recently Illinois (Chicago).

It is in my opinion that if the population is high enough, and the economy is strong enough, you can do well in any market you choose.

The questions you really need to ask yourself are: Where do you want to live? Who do you know that can help you? etc.

If you plan on staying in Israel, I also agree that you should potentially partner up with someone else that's physically in the market you want to do deals in, and slowly build from there. It's going to be very difficult working remotely from so far away with little to no market knowledge and/or contacts that you've personally accrued and met with.

Hope that helps.

I work with international Buyers flipping houses in North Carolina.  It's a pretty good program.  Check out my bio if you have a few minutes.

@Sheila Arca Account Closed
Thank you very much to all of you guys... you sure gave me some stuff to think about before I jump in.

Do any of you invest in a way of flipping houses and can recommend on an area based on personal experience?

Thanks,

@Shachar Hess Well I'm obviously going to be biased but I love Chicago and the surrounding suburbs. It's such a large city you are always going to be able to find an opportunity. 

There are many ways to create a plan or partnership to start flipping houses, it really depends upon you and your goals. Have an idea of what role you want to play in the process.

Do your research.  Charlotte, North Carolina is one of the top markets to flip houses in the United States.  If I can help, shoot me a message!

Boy this is a loaded question. I would really start by narrowing down your long term goals. Are you trying to make a quick buck or are you in it for the long haul? That one question alone should narrow down considerably the types of markets you want to be invested in. There is a market for everybody in real estate, it really depends on you.