I've read that they are not your best in real estate investing. I plan to wholesale , are condos or townhomes a tough sell ? My plan was SFR
It is just less likely you will find the needle so to say. Condos and Townhomes are managed by HOA so the exteriors are always going to be kept in good shape. In Orange County where prices are so high you cannot really add square footage except by extending a loft or something to that matter. Where on an SFR there are more possibilities. So then you have more angles to present to would be investor buyers. Also, condos and townhomes have almost identical characteristics so if a model match just sold for 500k. It could be very hard to justify a low ball offer. Your best chances are older areas where homes get in disrepair and other homes have had extensive remodels.
It really depends on what exactly you are looking for. Besides a good deal obviously. Everyone wants that. If you are marketing to potential short sales. Most likely your only angle nowadays in Orange County. Then it could work.
How are you marketing? That could help provide a better answer. Orange County will be difficult.
You can flip anything for a profit, but your intuition is right to focus more on SFRs for all the reasons Patrick mentioned above.
@Patrick Parry I will be using Direct mail to absentee as well as working on probate leads.
Those would be a little tougher to sell, but I would say if you are focused on wholesaling you could define that skill within condos and SFR. Define wholesaling as a skill and make the pool of prospects bigger by hitting SFR and Condos. This could be your focus and it allows you gather your in-depth knowledge of Orange County.
You can even define it by wholesaling SFR and Condos within North Orange County, which is your neck of the woods.
Good luck @Abraham Hodroj
Yes I would stick with SFR in areas without HOA. Stay away from Aliso Viejo and Irvine. I would say make sure the list is of homes built prior to 1980.
Harder to find deals, but fewer people mail them as hinted by the advice on here so there is less competition.
I've wholesaled I think three or four in my career. Just locked one up today!
@Patrick Parry very interesting , why is that ? I would assume they are all newer? any other cities you don't recommend?
Irvine and Aliso both have Master HOAS. Even the SFR are under them. Just less likely in my opinion.
@Abraham Hodroj Not unlike fishing, decide where the little fishy's are located and that's where you cast you line.
You are more likely to find multi-generational problems concerning SFR's, it's true. However, I've made money on condos, too.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!