How would you go about finding an area to go and flip a house? What do you look at in terms of knowing if an area has potential for flipping?
Thanks
Focus on what people are buying. Talk to several real estate agents & other rehabbers. For example, if a lot of people are buying $150K homes that are ranch style, brick construction with a basement, then focus on areas that have those houses with great school districts.
Also, focus on areas that have low DOM (days on the market) as that indicates a hot area.
If you want to be more sophisticated about it, you have to also watch the new foreclosure filings - as that is a leading indicator whether the area will have a potential to go down in price over the next 6-18 months.
Lastly, stay away from areas with predominantly new construction or houses that are very new (less than 3 years old). It's hard to find houses to rehab when all the houses are new. You can build new houses though in those areas - if that's what people are buying but if you want houses to rehab, then follow the above advice.