Quote from @Jordan Ray:
Quote from @Eden Vaschon:
As a newbie, I've determined that my first steps are to establish an area in which to focus, for house flipping and/or renting. I live in Southern California, but properties are far too expensive here to get started in my current financial position. I've been looking in the Jackson, MS area where homes can be purchased at just =< $30K. However, I want to ascertain that y this area (or some other area), would be a great place for back to back, multiple projects (not simultaneously). I want to be certain that where ever I start, it will be an area where selling after reno won't be a big issue.
Since I will be doing business out of state, establishing a team with a realtor, PM, GC & sub-contractors whom I can reuse on multiple projects is essential. So rather than spend a lot of time right now trying to figure out whether a single property is a good investment, my first step is to establish whether or not an (area) has strong potential for me to reuse the same team on at least 2-3 properties in a row. How best might I gain that information. Where can I look and who can I talk to?
You bring up a really good point, and honestly, this is one of the biggest pitfalls I see newer investors fall into: chasing cheap houses instead of chasing profitable systems. Just because a property is $30,000 doesn’t make it a deal — it could just mean nobody else wants it. I’ve looked at markets like Jackson too, and while the price tags are attractive on the surface, you’ve got to ask why they’re that low.
A lot of the time, properties are that cheap because they’re in areas with extremely low demand, high crime, or zero appreciation — and more importantly, they attract high-risk tenants. These types of properties often lead to higher maintenance costs, more frequent evictions, constant turnover, and even damage that wipes out your cash flow completely. The rent might look solid on paper, but if your tenant doesn’t pay or trashes the place, you’re right back at square one — or worse.
That’s why I invest in working-class neighborhoods where people actually want to live. Not top-tier areas, but places where a good, clean rental is in demand. In Memphis, I can pick up properties and run BRRRRs with under $10K out of pocket, but I’m doing it in zip codes that have real exit strategies — either resale or long-term rental. They’re blue-collar, cash-flowing areas where you can build a system, not just score a cheap house.
Buying cheap for the sake of cheap almost always ends up costing more in the long run. The goal shouldn’t be finding the lowest-priced deal — it should be building a repeatable, profitable process with a team that can support multiple projects. That’s where the real wealth is built.
Happy to share more about how I set that up if you’re curious — always good to connect with other investors thinking long-term.
Jordan,
I'm both thankful and humbled by your insightful response. Having been a carpenter with a home improvement business in addition to working for other GC's for a combined 12+ years, I simply cannot be more clear on how difficult it is to get a competent, skillful, trustworthy and reliable team of sub-contractors together to make even a single project go the way you would want it to go. I'm already anticipating how difficult this is going to be with a team at that is separate from myself and in a completely different state. (And I really do have to stifle a laugh when I hear people mention how simply and easy things can be with the use of a paid project manager to check on things for me). It is never really just so simple.
Nevertheless, the biggest thought going off like a neon light in my head was of finally getting all the right players in the mix to renovate a project, then jump to completely different city/state or neighborhood where they can't be used a second time, and then start all over from square one, putting another team together for a second project. Worse yet, do it all over again for a third project. Even less rational, would be requesting subcontractors to travel from state to state as random projects are selected, renovated & based solely on individual profit value. (Do I simply throw darts at the map of the U.S. and say: "hey.... Let's see which deals are available in this neck of the woods!")
As a newbie, I'm well aware of the fact that where I live in Southern California is a horrible place to start! Quite simply nothing noteworthy is available here for less than $600K. That's one hell of a ticket price to deal with for a first, second or even third project. So I have no choice but to look elsewhere. However, you input has given me even more to consider as I look to other states and I'm very thankful for your input.
_Eden
