Out Of State Flipping

19 Replies

Mainly because of low price points so I have more reserves for when something goes wrong. Cleveland seems financially feasible and seems to have quite the bit of inventory compared to everything around me in the bay area. @Will Barnard l

Originally posted by @Johnny Hoang :

Mainly because of low price points so I have more reserves for when something goes wrong. Cleveland seems financially feasible and seems to have quite the bit of inventory compared to everything around me in the bay area. Will Barnard l

The market you're suggesting is regularly recommended for buy-to-hold rentals (for positive cash flow), rather than flips. 

Rule of thumb: Flipping is best in areas that are highly sought after by owner-occupiers (rather than investors). My 2c...

Originally posted by @Diogo Ferreira:

Can anyone recommend good contractors in Ohio?
I am looking for some flips and a GCobtractor is required

 Flipping out of state is going to be a FULL-time job. many contractors do not show up or do not do the job you are looking for.  Have you thought about purchasing a home that does not need much work? That would only work if you are doing a buy and hold.

Thank you for the words of wisdom Tom! I was leaning more towards buy-hold in Cleveland as I am concerned about what you mentioned with the contractors.  It was just a thought if I could get the right people on board we can possibly make it happen out of state but you're right, it is a big challenge being this far. I might have to reconsider doing flips out of state, at least for the time being when I'm just beginning.

Originally posted by @Tom Ott :
Originally posted by @Diogo Ferreira:

Can anyone recommend good contractors in Ohio?
I am looking for some flips and a GCobtractor is required

 Flipping out of state is going to be a FULL-time job. many contractors do not show up or do not do the job you are looking for.  Have you thought about purchasing a home that does not need much work? That would only work if you are doing a buy and hold.

Thank you for the words of wisdom Tom! I was leaning more towards buy-hold in Cleveland as I am concerned about what you mentioned with the contractors. It was just a thought if I could get the right people on board we can possibly make it happen out of state but you're right, it is a big challenge being this far. I might have to reconsider doing flips out of state, at least for the time being when I'm just beginning.

There are areas in any city that would be great for flipping I'm sure, but Cleveland is going to be a lot of work. I literally went through 7 quotes on a flooring project before I could get a single one to actually call back or start the project. It was a decent sized job and I wasn't haggling price, I just needed it done. And I used to run a contrating company so I know how the game works. That might have been a fluke, but doing a whole flip project in a city that's so unpredictable is not something I'd ever want to tackle if I had to do it out of state. I'm flying out to Cleveland just to build my team of more contractors so I'll be testing a few out on a new duplex I'm closing on the 5th. 

@Diogo Have you thought about investing anything in Central America?? I Also would like to Help more investors solve how to overcome the barriers of not having enough time or investing from out of state or country. 

Originally posted by @Ryan Evans :

There are areas in any city that would be great for flipping I'm sure, but Cleveland is going to be a lot of work. I literally went through 7 quotes on a flooring project before I could get a single one to actually call back or start the project. It was a decent sized job and I wasn't haggling price, I just needed it done. And I used to run a contrating company so I know how the game works. That might have been a fluke, but doing a whole flip project in a city that's so unpredictable is not something I'd ever want to tackle if I had to do it out of state. I'm flying out to Cleveland just to build my team of more contractors so I'll be testing a few out on a new duplex I'm closing on the 5th. 

After reading a few replies within this thread in addition to yours, I think Cleveland might only be a viable option for buy and hold(turn key). Thank you for the input, might've saved me quite sometime and money!

@Diogio What type of strategy works in that area or deals are you seeing I have heard good things about the midwest  Some Investor seem hesistant at first but are finding less competition, more value or stability in those areas? From your StandPoint

@Jorge Kuzmicic I'd say you need a solid and competent project manager. Strike an agreement and pay them an hourly consultant fee to comb through your ideas, vision, deal breakers, target areas, purchase points, rehab costs, quality of finishes, etc. Embed the project manager with your level of thinking so they know your investment parameters which will enable he or she to contribute to your property search, contractor selection and end product. Paying $500 - $1,500 upfront is much better than misusing $5K+ post construction commencement...all about opportunity costs my friend.