Hello! I’m 21 years old and working my way through nursing school, but I have recently had an interest in real estate investing. I don’t have any capital for investing at the moment, but I figured I could still practice looking for deals and get good at crunching numbers. I’m currently interested in flipping and I was wondering what you guys look at when trying to find a property as well as what to avoid. I’m also interested in what numbers I should be calculating to see if it is a good deal of not. Thanks guys!
Investor · Collierville, TN 38017 · Member since 2017 · 625 posts · 455 votes
17h
Deal flow is the real bottleneck in this business, so you're asking the right question.
Here's what I look for: 3BR+ single-family houses, all-in under $100K, that clear the 1% rule with Section 8 rents of $1,395-$1,950. I buy in Memphis ZIPs like 38109, 38111, 38114, 38116, and 38118, and I look for the conversion angle - a 2/1 that can become a 3/1, or a 3/1 that can become a 4/2 by adding 400-650 sq ft or converting a carport or garage into a master bed and bath.
The secret isn't some special list. It's having a buy box with real numbers, then working wholesalers, agents, and direct outreach daily. I never put earnest money down, so I can move fast when a deal fits.
Define the deal first. Then go find it. Across 236 properties, every good buy started with knowing exactly what 'good' looks like.
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 927 votes
10h
Quote from @Zane Libby:
Hello! I’m 21 years old and working my way through nursing school, but I have recently had an interest in real estate investing. I don’t have any capital for investing at the moment, but I figured I could still practice looking for deals and get good at crunching numbers. I’m currently interested in flipping and I was wondering what you guys look at when trying to find a property as well as what to avoid. I’m also interested in what numbers I should be calculating to see if it is a good deal of not. Thanks guys!
You're actually doing the right thing by learning the numbers before putting money into a deal. For flips, I'd start with purchase price, rehab costs, ARV, holding costs, selling costs, and your expected profit. Don't just look for cheap houses either, pay close attention to the neighborhood, comps, and how realistic the rehab budget is. You can also practice analyzing deals in other markets, especially the Midwest, where lower entry prices can make the numbers easier to learn on.