Aspiring fix and flipper wondering what the outlook on investing in this area (Missoula, Montana) from an investor's stand point! What are the things that are stopping you? What are the things that draw you to this area! What are you looking for out of an investment deal (aka % interest, profit, etc.)?! How do you prefer to be approached about possible investments?
Thank you for the advice!
I think it is hard for the numbers to work here in Missoula. If you work hard enough at it I'm sure you can find some decent deals out there, but so far the price points I've found and the repair costs and ARV don't leave much room for a fix in flip to pencil.
That being said, I haven't been looking as much recently, building my own residence, as well as starting my handyman business have taken most of my time and $. I'm going to be looking for a fix and flip or BRRR in the next 6 to 12 months, but I think it will take a lot of research and knowing your numbers. I'll be doing most of the work myself and have a friends in the contracting space to rely on. Finding the deals in Missoula is where I think the money is made.
@Jeremiah Purdum thanks for the reply!
I have heard mixed reviews on whether or not Missoula can be a profitable location, lots do seem to agree that if you do your research etc., the deals may be out there but the vast majority of homes for sale will not be profitable from a flip standpoint. I wonder if this stands to change in the next few years? Seems strange because there are so many people moving into the area and lots of dilapidated homes that if fixed could be competitive simply due to location.
I have heard more favorable things about going towards the Bitterroot however, which we would be fine with.
My partner and I work with a real estate agent/broker who will be feeding us homes before they hit the market, including pre foreclosures, which allows us the ability to get them for lower than market price without as much competition. From what he is able to see, there are homes that come through that do have room for profit so we do have a little advantage there and hope we can find our gold mine! Will keep doing the research and pushing numbers until we feel comfortable pulling the trigger!
This echos my experience for sure. The model I've seen seems to be to buy-and-hold and ride the appreciation, although that is much more speculative than I would like. I've been eyeing the multi-family market for several months now and have seen properties sell for list prices that make me scratch my head on how the numbers work. I think that many folks are accepting essentially zero cashflow with the hopes that 10% annual appreciation will just keep on keeping on.
Looking forward to being proved wrong!