EP 15: Where to Buy?

Where to buy (flips)?

1. Buying is a personal decision.

2. A few things to keep in mind:

a. Proximity to your personal home:

  1. Some people buy far from where they live.
  2. This is not recommended for beginners.
  3. You should be able to reasonably drive there.
  4. There are probably plenty of good opportunities in a 10-20 mile radius.
  5. You have better knowledge of nearby towns and communities.

b. The more dense the area, the more stable to comps should be:

  1.  Urban areas have more houses, and often similar houses. This makes determining ARV a lot easier.
  2. Urban areas have more buyers.
  3. Urban does not mean large city- I live 30 minutes outside of Detroit. Lots of houses, not many great opportunities (bad neighborhoods).
  4. Rural areas have fewer sale comps, fewer buyers. It can work, but it will be more difficult.

c. Knowledge of the area:

  1. I recommend that you don’t buy in cities and towns that you are unfamiliar with.
  2. It’s easy to accidentally buy in bad areas.

d. Access to funds and amount of funds available:

  1. High-end flips might yield more, but also cost more to invest in.
  2. 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.

About the author, Mike

This bio can be edited in your profile inside Dashboard > Site Management > Users.

Simply hover over your username, click "Edit" and change this biographical information to something that you prefer.

Leave a Comment