Northern Ohio Fix and Flip
I have two questions.
First, I am interested in hearing from people who have invested in real estate in towns in northern Ohio, those bordering Lake Erie. I live in NYC, which seems far too expensive for my first fix and flip. I am a little familiar with northern Ohio, as I have extended family there. Certain towns appear to present interesting investment opportunities because the homes are much more affordable. I am worried, though, that there may not be enough buyers out there. While there is wide variation in wealth between towns (Sandusky is generally poorer than Vermilion), I still worry that even in the "wealthier" towns, there just is not a lot of demand for a nicely rehabbed house. If the numbers online are accurate, homes often sit on the market for a long time before being sold.
Second, I found a cheap house in the area that looks trashed and will need significant repair. If you zoom in on the map on Zillow, there are estimated values assigned to every property, not just those on the market. How accurate are those numbers and how much should I figure those "Zestimates" for similar neighboring properties into my market analysis? For example, they suggest that I could acquire the trashed property for $50,000, put, say, $40,000 into it, and achieve an ARV of maybe $120,000. I would never rely on these numbers alone, but should I rely on them at all and, if so, how much?
Thanks, all.
Clark