Good evening Bigger Pockets!!!!
I am a new investor in Texas looking for a good market to start out in. Most of the markets in Texas are heavily inflated due to the recent influx of people moving to the state making it very hard to find "deals".
A city that has recently come to mind as a possible location for flipping houses in Billings Montana. Specifically targeting the $200K to $250K ARV value market.
Does anyone have experience working in Billings? I'd love to exchange thoughts with anyone currently operating in the area.
what keyed you to that area?
No deals here... go away... :)
But seriously you need to know your neighborhoods. Not all billings is the same. Call or text me sometime and ide love to chat with you about it!
Right now I am looking at neighborhoods North of Poly Drive and west of Shiloh Rd. My focus is neighborhoods with a high density of households making $75K to $100K. This is my best guess based on demographics of the area but I don't have any "boots on ground" experience to back up my theory.
Hi Kenneth. I am a realtor here in Billings. My office has the Fannie Mae and VA foreclosure accounts so I regularly deal with flippable homes.
I'm not quite sure you are going to find homes north of Poly Drive and west of Shilo that are going to fit your desired price range. The majority of the homes in that area are new construction or in much higher price range than your target.
A couple major factors are:
1. Are you going to to do the work yourself?
2. The cost of hiring decent crew that shows up on time, and completes the work quickly is really high compared to what you are likely used to in Austin.
3. Materials here are typically at a higher cost.
I'd be happy to help answer any other or specific questions you have.
Mike: Thank you for the comments.
I have noticed that those areas are a little pricer but it appears there is a handful on the market right now that could work. My guess is that they will sell fast being in a good neighborhood. Specifically looking at the area between the two colleges. I am also just starting out and open to other neighborhoods. I would prefer to operate in more established neighborhoods.
I would certainly be interested in looking at your foreclosure inventory.
1. I will be self-performing most of the work for the first 2 or 3 and subcontracting work I cant do. My background is in construction management so not much will scare me off; as long as I can quantify the risk and make the numbers work.
2. That is very surprising to me. I currently work in commercial construction as a GC and we have large issues with labor shortages. We pay 30% more today for labor than we did 5 years ago (quality labor that shows up). Do you know what the typical hourly wage for a laborer is in Billings? I will need to review my estimates for electrical, plumbing and HVAC work. Do you have any reliable contractors you can recommend?
3. Also a surprise, Texas has an 8.75% sales tax so I assumed any added cost for shipping north would be offset by the sales tax. I will need to do some digging into this as well and adjust my estimates.
Thank you in advance for your help and taking the time to respond.
@Joshua D. I am a wholesaler looking to break into the market. I would love to connect with you.