Cheaper Homes or faster market?

Question

My husband and I are wanting to move out of California and start flipping homes in a tax friendlier state.  Do you think it is better to move to an area where the houses are cheaper but might take a little longer to sell (for example: Ohio) or go to a place like Northern Colorado where the homes cost a little more but flip faster?

Remington Lyman · Answer

I think it would be smarter to move to Columbus, Ohio. The properties are cheaper than CO but also sell quickly.

Marc Rice · Answer

@Michelle Apple

You can flip in almost any market, especially where the population is increasing. I’d agree with @Jay Hinrichs that it’s best to invest where you have a competitive edge, experience, or feet on the ground - especially when starting out. If you’re looking just for buy and hold rentals I think it’s a little different but similar.

Mike Mocek · Answer

Hey @Michelle Apple Great content and information in this thread for sure!  I observe in Toledo and Columbus and overall the markets are nicely compared.  Overall, the midwest is a very healthy market for investors etc too!  Sending you a PM now :)

Brandon Sturgill · Answer

@Michelle Apple Columbus and Cincinnati routinely hold the top spot for least days on market in the US...Columbus is intentionally underbuilding and 40,000 new homes short of demand...more like 70,000 affordable units short of demand. Renovated "flip" properties are becoming the majority of the inventory in several neighborhoods...your biggest limitation here is keeping pace with demand...you can flip 100 homes a year and not be close to current demand...

Brandon Goldsmith · Answer

Houses here in Columbus, OH are cheaper but don't take long to sell at all. Most affordable houses are in contract in a few days. @Michelle Apple

Carlos Ptriawan · Answer

California and Colorado are mostly appreciating the Market. Ohio is mostly a cash-flow market (traditionally). But they have good both future appreciations as well.Colorado is an extremely good market for flipping new construction though if you know which zip code.But Ohio is giving you relatively better living quality than CO or CA.If I would like to move out of CA, I will move to Alabama for instance.

Account Closed · Answer

Get comps and DOM from a Realtor to help with your decision making - also get estimates from a lender first to make sure the market isn't tertiary and non lendable.

Whitney Hutten · Answer

@Michelle Apple I agree with the advice here, but there is one point that is missing... your secondary exit plan. Where do you want to be investing should the market turn and it no longer makes sense to flip? Hopefully, you will see the shifts well ahead of that point and you can exit out of your projects without much impact. However, where do you want to be should you have to hold the asset instead?  Always have a 2nd or 3rd exit plan.

Mike Mocek · Answer

Hey @Michelle Apple Great content and information in this thread for sure!  I observe in Toledo and Columbus and overall the markets are nicely compared.  Overall, the midwest is a very healthy market for investors etc too!

Cheaper Homes or faster market?

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