Flipping out of state property

4 Replies

I have been contacted by a family member out of state in NC I'm in San Diego he wants to sell fast and get out and it needs a lot of work and I've already told him that it will I have a warm referral for a contracting company and have a rough estimate of the ARV off of Zillow and Redfin of about 85k it's a seller Market in the area but it is my first flip and out of state so was reaching out to see any tips and things I need to make sure off in order to continue and if I should just wholesale instead? Thank you for any input

I think a first flip has enough challenges that I suspect a first flip OOS is likely not going to work out that well.  If you had already the experience of a few flips and knew the type of items that always seem to pop up, I would think you would be in a better position to succeed.

If you do proceed, be sure of your ARV (do not rely on Zillow or Redfin), your rehab costs (include some margin), your holding costs, and your selling costs (are you going to stage?). Make sure you have enough profit for various items that can materialize. This includes but is not limited to items exposed in the rehab (this happens more often than not), trips to the RE, longer holding time than expected, a potential slight market reduction, etc. Be conservative in your estimates.

Have you considered partnering with a local or wholesaling it to a local flipper?

Good luck

Hey Howard! I'm in San Diego as well. I flip and rehab homes back home in Philadelphia, but it took 2 years to build up a trusted team and partners on the ground. I would tend to agree with @Dan Heuschele , unless you are incredibly confident about your team, it is way better to make 10-15k in an assignment fee than losing 40-50k in a flip that went sideways. Good luck!

@Dan Heuschele

I have thought about wholesaling it honestly it might be hard due to the amount of repairs needed currently waiting to interview some contractors I'm going to get all the numbers and choose the best way to proceed I plan on contacting a landlord who has wanted the property for years (owns most in the neighborhood) to see if he is interested after I have everything lined up also a couple of realtors are running comps for the property I really appreciate the help and insight most likely ill wholesale but I'm keeping my options open thank you all

Best regards

Originally posted by @Howard Riggs :

@Dan Heuschele

I have thought about wholesaling it honestly it might be hard due to the amount of repairs needed currently waiting to interview some contractors I’m going to get all the numbers and choose the best way to proceed I plan on contacting a landlord who has wanted the property for years (owns most in the neighborhood) to see if he is interested after I have everything lined up also a couple of realtors are running comps for the property I really appreciate the help and insight most likely ill wholesale but I’m keeping my options open thank you all

Best regards

Wholesale would be my advice.