@KIran K. you're going to have to get far more creative and cast your net much wider than the MLS. Deals are not found on the MLS and the market is extremely competetive. In August, there was less than 1 month of supply on the market. 6 months is generally considered a balanced market. You're going to need to develope relationships with people on the ground that can bring you off market deals. The other challenge that you will have trying to do this out of state is once you identify a property, how do you know how much work it needs, what the scope of work is and what the cost will be. When flipping, it's all about getting your numbers nailed down upfront so you know how much it will see for and how much you can pay. It's not as easy as the shows make it look.
@KIran Kaur if that is your only criteria, there are dozens of homes going for under $60k in Indi. You should be more concerned about comparative home sales, in my opinion.
For example, if you buy a $60k home in need of a few repairs in a neighborhood where renovated homes are selling for $75k, your margins will likely be too slim to proceed.
If you find that same home at that price with those same renovations needed in a neighborhood where renovated homes are selling for $110k, that may be more worthwhile to pursue as a flip.
“Comps” are super important for flippers, ask your agent more about it!
@KIran Kaur no worries! I made the mistake of thinking a cheap property meant I must be getting a great discount, and getting so fixated on that purchase price. Rookie mistake on my part
@KIran K. you're going to have to get far more creative and cast your net much wider than the MLS. Deals are not found on the MLS and the market is extremely competetive. In August, there was less than 1 month of supply on the market. 6 months is generally considered a balanced market. You're going to need to develope relationships with people on the ground that can bring you off market deals. The other challenge that you will have trying to do this out of state is once you identify a property, how do you know how much work it needs, what the scope of work is and what the cost will be. When flipping, it's all about getting your numbers nailed down upfront so you know how much it will see for and how much you can pay. It's not as easy as the shows make it look.
I agree with Mike's comments above. Learning about the market and neighborhoods and finding off market deals are key. I would suggest reaching out to other investors in the area through the local REIA, for starters.
I agree with Mike's comments above. Learning about the market and neighborhoods and finding off market deals are key. I would suggest reaching out to other investors in the area through the local REIA, for starters.