What to look for in market I want to flip in ?
Hey BP family. I am currently analyzing a couple different markets in my area to find the one I want to do flips in. My story is great for rentals but properties have no room or way I can force appreciation past 60/70k. Just looking for some tips on what to look for in a market specifically for flipping!
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@Matt Brunson you need a market with strong demand from flippers and retail buyers. You need to be able to buy and renovate for 65-70% of market value. Usually the best margins are on houses that will sell around $150 -$200k and up. If market values are $60-$70k after renovations you should look to wholesale those.
@Greg Dickerson
Awesome thank-you so much man! That really helped me out. Just one quick question so with wholesaling properties that are under a 100k will that be mainly assigning to landlords? Or should I not worry about that and just focus on working good deals and let them focus on what they will do with it?
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@Matt Brunson yes for lower end properties under $100k you want buy and hold investors. Those usually make good rentals in a lot of areas.
@Greg Dickerson
Alright awesome thank-you so much! If you ever need anything out in P.A I would be more then happy to help!
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#2 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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@Matt Brunson Another market to consider as a wholesaler in te $60-70K range is flipping to a turnkey provider that could rehab, tenant, and place with a PM. If the ARV and rents are very close to 1% and above the landlord will love it, and if there is spread the turnkey provider will love it too. Just a thought.... I don't intentially flip to other investors... but I'll do it if it make sense!
@Whitney Hutten
I haven’t thought of that thank-you!
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Originally posted by @Matt Brunson:
Hey BP family. I am currently analyzing a couple different markets in my area to find the one I want to do flips in. My story is great for rentals but properties have no room or way I can force appreciation past 60/70k. Just looking for some tips on what to look for in a market specifically for flipping!
Flipping isn't about the market. Flipping is about you and your ability to do the following.
- Raise / acquire funds
- Market to distressed sellers
- Estimate rehab costs
- Estimate the ARV of properties in your target market
- Manage contractors
- Hit timelines & manage large projects / employees
If you can master all of the above the market is going to be irrelevant. Note that I would assume your best shot at mastering all of the above is going to be in the market you live in.
@James Wise I really appreciate the feedback boss. I definitely have a lot of those qualities in me and getting better everyday. The one that I'm sure I have a lot to improve on is managing contractors.
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Originally posted by @Matt Brunson:@James Wise I really appreciate the feedback boss. I definitely have a lot of those qualities in me and getting better everyday. The one that I'm sure I have a lot to improve on is managing contractors.
Good luck my man. You'll get there.