Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
I think there are several "right" answers to this question, and certainly no wrong answers. I am going to begin flipping, and while there's no research I trust like my own, it's great to hear from the BP community what works for them.
So far, I've gathered that cash flow is pretty good in the Midwest, although I don't know if that logic also applies to flips. My intuition is that it does not.
So- what are the best flip MSAs out there? What do you like personally? Why did you start flipping there?
I hope this stimulates an interesting, worthwhile discussion.
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
15y
I would say that the best flip market is that which is:
(a) closest to you
(b) that you understand thoroughly
(c) can buy at below market value
(d) can manage financially, both on the acquisition side & the rehab/carrying side
The out-of-state thing is quite tough; I've learned first hand. I think the best thing to do with out-of-state investing is virtual wholesaling. What I have done is located true wholesalers & paired them with local investors. I have done this successfully in the Dallas/Fort Worth & Houston areas.
Vikram flips in the Phoenix area, but it is my understanding that he does high-end ($300K+) homes.
Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
15y
I'll kick it off!
I flip in my own backyard...in a metro area which has been known to be the epitome of the rust belt: the Flint, MI metro area. There's nothing glamorous about this area, but some of the surrounding communities offer nice neighborhoods. Those are the areas I target.
I stay right in my backyard because I'm very hands on. While I have contractors do most of the work, I've been known to get right in there and get my hands dirty. Plus, I know this market very well and can comp out a property by just hearing the street name. For the time being, there's plenty of inventory and I don't see myself having to expand in a new market anytime soon.
My personal love of flipping is that I don't have to deal with tenants. I can be in and out of a flip in as little as 30 days and retain the profits. Over the years tenants have worn me down! Flipping is a different animal of REI.
Real Estate Investor · Cleveland, OH · Member since 2010 · 31 posts · 18 votes
15y
I agree with Mark. My market may not be "best" for flipping, but I don't see how I would be able to do it anywhere else seeing how much hands-on management it takes.
Does anyone flip properties that are not a reasonable distance from where they live?
I would also be interested to know what segment of the market people target for flips... low end, blue-collar, middle class, upper middle class, high end?
From my experience, the low end of the market offers better deals and you can do more of them (due to lower costs), but middle of the pack type houses are much easier to sell.
Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
15y
So basically it sounds like the best flip market for you guys is "what's close by".
I've gotta think if you had a far better MSA for flipping in the same time zone, you could do more deals and make more money per deal operating in that market as opposed to the one in your backyard.
I'm considering Phoenix, in particular. Anybody have experience flipping there?
Residential Real Estate Agent · Clermont, surrounding areas, FL · Member since 2011 · 12 posts · 2 votes
15y
My market area is pretty good, I am located in the Central Florida area. Last year was a great year, but this year the foreclosure auctions have been sluggish, so not much moving with the flips. We have a couple of local counties that are doing online auctions here as well, I haven't tried that, but have friends that are happy with the properties they aquire.
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
15y
I would say that the best flip market is that which is:
(a) closest to you
(b) that you understand thoroughly
(c) can buy at below market value
(d) can manage financially, both on the acquisition side & the rehab/carrying side
The out-of-state thing is quite tough; I've learned first hand. I think the best thing to do with out-of-state investing is virtual wholesaling. What I have done is located true wholesalers & paired them with local investors. I have done this successfully in the Dallas/Fort Worth & Houston areas.
Vikram flips in the Phoenix area, but it is my understanding that he does high-end ($300K+) homes.