I disagree that there are plenty of houses that can be fixed and flipped for a healthy profit. There may be houses that need work, but getting an owner to sell at a discount is the issue in my opinion. I haven't pulled the data since Coronavirus, but previous to that, there was only 2 month's supply of homes on the market. Not much reason for a homeowner to sell at a discount when they can put their home on the market and sell it pretty quickly for a good price (assuming they price it correctly).
@Carolina Brembilla it can go either way the thing to keep in mind is that SoCal will have older housing stock than AZ for the most part, there aren't too many paint carpet, and you're done type flips. Thousand Oaks is nice and you can probably do well there if you find a property to flip, but it is only a city of 130,000 people so flips don't hit the market everyday like they might in a huge city like Phoenix.
@Carolina Brembilla I have not done a flip in Thousand Oaks but I have lived there for quite some time and I love it!
I know there are many RE investors active in the area, throughout the county. There is a strong inventory of older properties which can be ripe for flipping however as the previous commenter mentioned, it will certainly not be as ample supply as Phoenix. The city of Ventura, Malibu, and calabasas (during a healthy market) can provide some additional supply that will supplement the lack in Thousand Oaks.
@Carolina Brembilla Ventura county has also experienced a net decrease in population last year. That is something to be mindful of but overall the real estate market here has been strong until now, we will wait to see what happens.
@Liam Wells thank you Liam. Good to know. Yes so is true again that the market won’t be comparable to the Phoenix one. We actually work in Scottsdale mainly.
So now the market here is booming and demand is super strong.
But I bet California is also an area with high demand
@Liam Wells thank you Liam. Good to know. Yes so is true again that the market won’t be comparable to the Phoenix one. We actually work in Scottsdale mainly.
So now the market here is booming and demand is super strong.
But I bet California is also an area with high demand.
Carolina, Thousand Oaks is an extremely desired area to live in Ventura County. The problem that I have seen is a lot of retail buyers are willing to pay upwards of 600k for houses that need a decent amount of work. But there are definitely plenty of houses in Thousand Oaks that can be fixed and flipped for a healthy profit.
LA county is probably one of the best places to flip in the world when you find a good deal. There's just more competition. Thousand Oaks is a nice area.
That’s interesting because I used to think the opposite, so not a good place at all. But I have been there for the weekend and I was looking on Redfin and is true that the demand is always there and is strong ! I think is super hard to find a good deal.
Also, are flippers buying like million dollars houses, fix it and resale for profit ? Because average price there is very high..
I disagree that there are plenty of houses that can be fixed and flipped for a healthy profit. There may be houses that need work, but getting an owner to sell at a discount is the issue in my opinion. I haven't pulled the data since Coronavirus, but previous to that, there was only 2 month's supply of homes on the market. Not much reason for a homeowner to sell at a discount when they can put their home on the market and sell it pretty quickly for a good price (assuming they price it correctly).
Having wholesaled 20 deals to flippers in LA last year and probably will do more this year, I would say LA is a great place to flip; but they're likely going to be harder to find than AZ.
@Carolina Brembilla yes that is a great neighborhood. It’s still considered Thousand Oaks, but it’s practically in Westlake Village. Great schools, and it’s close to shopping, restaurants, and grocery stores.
In my experience, your flip revenue comes from buying at a low/"good" purchase price. I do off market real estate, so we tend to find homes that sell 20- 30% below market...the revenue you save on the buy is what you end up making on the sale.
@Carolina Brembilla Some are buying 1M dollar homes yes. I'd say the majority of flippers though try to stay more in the 300-600k range. Every deal is different. I think rehab budget is a big factor of how much capital you need to do a deal. For example you can potentially flip a 1M dollar home with less than 200k ( Est. 100k purchase and 100k rehab budget ). You may need to buy a 700k home and put 250-350k in for the rehab depending on if you add sq ftg or do an ADU + nice rehab, etc.
One good think that we have on our side is that my husband does part of the job himself because he’s very knowledgeable and he likes it; also, he’s really on top of workers that he hires for doing the other part of the job and we tend to get the less expensive workers out there (you really need to stay on top of them especially if you pay less then average).
So this is how we manage to renovate a house with a lower budget labor then average and we have a bit more budget for quality materials and fancy details.