$200K cash, where to spend it on a quick flip?

Question

Hey BP friends,It's so BIG...the guy from Australia says to the USA.

Where do I start? Probably at the begining right? I'm looking for a worthwhile flip in the States, have been looking at Detroit and have a great agent there but he can't find anything where the numbers stack up. He thinks it's the winter snooze fest. So I can be more patient or see what's going on elsewhere.

Where y'all looking for your next flip?

I've got about $200K cash, no preference in house type, it's just the numbers and the hold duration that count.

Thanks

Dave

Lindsay Stewart · Answer

@Dave H.

G'day Dave

You certainly should be able to get deals to stack up in Michigan for those figures.  I am based in Australia and work actively in Michigan - both in and out of Detroit and can get 25-30% ROI nett from flips right now.  Just need to allow 60-90 days on market for vacant possession or selling off market quicker for tenanted investment properties

Having someone on the ground you can trust is critical, so if you have a great contact in Michigan I would look there.

If you don't mind Detroit, try 48224, 48215 or 48221.  If you prefer the 'burbs try Warren, Eastpointe, St Clair Shores, Hazel Park.  Should find plenty within your budget

Cheers

Lindsay

Dave H. · Answer

@Drew Sygit so far only Michigan, in areas outside of Detroit.

I’ve heard Florida and Ohio might be worthwhile looking at, what do you think?

Joshua Hively · Answer

@Dave H. No problem. Headed your way.

Dave H. · Answer

@Joshua Hively would you mind sending me a PM with your contact details?

Joshua Hively · Answer

Hey Dave. My team is actively wholesaling, rehabbing and holding in Columbus Ohio. I would be happy to chat with you about some of the opportunities here.

If you are new to the game and haven't already, I would recommend reading David Greene's book "Long Distance Real Estate Investing".

You can spend $200k flipping houses in any US market. I would spend more time focusing on establishing a relationship with an operator. Boots on the ground. Flipping houses can be difficult even when you are managing them from the same city. Once you find someone you trust with teams, systems and processes in place I would want to start with a partial investment in a deal as a test run. If the deal goes well and you like your team you can continue to scale your investments. Investing the whole $200k in your first deal would be an unnecessary risk in my opinion.

Dave H. · Answer

Anyone got any experience with Florida or Ohio? Would you mind sharing your experience?

Or anywhere else that’s hot right now for a $200k flip?

Drew Sygit · Answer

@Dave H.: $200k puts you in the suburbs where there's less security issues on worksites.

In what cities has your agent been looking?

Dave H. · Answer

@Greg Dickerson yeah Greg, in Australia. I’ve updated the post.

Greg Dickerson · Answer

Are you located in Australia?

$200K cash, where to spend it on a quick flip?

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