Flipper/Rehabber · New York, NY · Member since 2018 · 75 posts · 6 votes
Hello,
I wanted to ask, how can I determine if a property I am researching is a good deal for a flip?
I currently live in NYC and I am looking for properties in PA, CT, and NJ and I see good prices but I'm not really sure if it'll be a good investment. Any tips ?
btw, I am looking at these properties on Realtor.com and Zillow.com
Specialist · Olympia, WA · Member since 2011 · 45 posts · 12 votes
8y
Congrats on starting your journey!
The old rule of thumb is: After Repair Value X 70% - Repairs=Max purchase price. There are tons of other variables such as level of rehab, size of the property, how competitive the local market is for flips, level of profit required, etc. It is really just good for back of the napkin kind of math.
You'll want to look at nice, fixed up comparable properties for your ARV. Then work back from there. There's a lot more to it, but that's a quick and dirty answer! Whether or not it is a good deal FOR YOU (specific strategy for your markets, financial situation, level of skill and experience, etc.) , and not just a 'good deal', is a whole different story!
Specialist · Olympia, WA · Member since 2011 · 45 posts · 12 votes
8y
Congrats on starting your journey!
The old rule of thumb is: After Repair Value X 70% - Repairs=Max purchase price. There are tons of other variables such as level of rehab, size of the property, how competitive the local market is for flips, level of profit required, etc. It is really just good for back of the napkin kind of math.
You'll want to look at nice, fixed up comparable properties for your ARV. Then work back from there. There's a lot more to it, but that's a quick and dirty answer! Whether or not it is a good deal FOR YOU (specific strategy for your markets, financial situation, level of skill and experience, etc.) , and not just a 'good deal', is a whole different story!
Flipper/Rehabber · New York, NY · Member since 2018 · 75 posts · 6 votes
8y
Thanks for the reply ! Another questions, How do I check how competitive the market is or the comps around the area ? Are there any other sites I can check? P
Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
8y
@Catherine Morel the sites you are looking on you will need to scour for deals. Look for property which has been on the market greater than 90 days. Also you need to focus on a smaller market so you can gain knowledge in it. Real estate is local, but can be done remotely. Pick a zip code, learn it, know the demographics, study the crime patterns, where are the schools, where are the major employers. All of this you can do from your laptop, but you need to focus.
Flipper/Rehabber · New York, NY · Member since 2018 · 75 posts · 6 votes
8y
I haven’t reached out to a realtor. I am trying to figure it out myself. I have no idea how to contact a wholesaler. I am working on networking so I can meet people in my area that can help me start this journey.
Rental Property Investor · Brooklyn NY · Member since 2018 · 263 posts · 469 votes
8y
I have no experience with flipping, but I am in the process of purchasing a rental property in Little Rock, AR. As you know, NYC is just too expensive.