Where to buy (flips)?
1. Buying is a personal decision.
2. A few things to keep in mind:
a. Proximity to your personal home:
- Some people buy far from where they live.
- This is not recommended for beginners.
- You should be able to reasonably drive there.
- There are probably plenty of good opportunities in a 10-20 mile radius.
- You have better knowledge of nearby towns and communities.
b. The more dense the area, the more stable to comps should be:
- Urban areas have more houses, and often similar houses. This makes determining ARV a lot easier.
- Urban areas have more buyers.
- Urban does not mean large city- I live 30 minutes outside of Detroit. Lots of houses, not many great opportunities (bad neighborhoods).
- Rural areas have fewer sale comps, fewer buyers. It can work, but it will be more difficult.
c. Knowledge of the area:
- I recommend that you don’t buy in cities and towns that you are unfamiliar with.
- It’s easy to accidentally buy in bad areas.
d. Access to funds and amount of funds available:
- High-end flips might yield more, but also cost more to invest in.
- Make sure you have both purchase and rehab funds available before you start making offers.
3. Talk to Realtors to determine the “hot” areas:
a. More competition
b. Selling the house can be the most frustrating part.
4. Location is a huge part of real estate investing:
a. You can buy right (price).
b. You can rehab well (estimate rehab well–stay in budget/timeline).
c. If you can’t sell because no one is buying in that area, you can/will lose money.