Where in the country should you invest in fix and flips? Well, there are entire books written on this, but here are a few pointers to get you started.
Before embarking on your fix and flip real estate journey, think through your overall real estate investing goals, and how a fix and flip plan fits into that.
For example, a fix and flip game plan can be particularly good for short-term cash flow, however, depending on your long-term real estate investing goals, it may or may not be the best strategy for you to achieve long-term financial stability.
Then, are doing fix and flips projects going to be a part-time endeavor or the start of a full-time career?
While some real estate investors may be looking to fix and flip a few investment properties in their free time to supplement their W-2 jobs, others may be planning to generate enough cash flow from smaller fix and flip projects to grow their real estate investment business into larger properties or asset classes.
Which fix and flip real estate investment game plan works best for you?
What is your financial starting point? Do you have a small nest egg built up to use for your first fix and flip investment project? Do you have the skill set to do some of the work yourself on a fix and flip? Does your family and work situation require you to be close to home? Then, it may make the most sense to look for a fix and flip investment project closer to home.
Do the numbers in your area, like home purchase prices, construction costs, and After Repair Values (ARV) support fixing and flipping a house?
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Alternatively, you can look for fix and flip investment projects outside of your local area. Many investors do long distance fixing and flipping successfully. We recommend David Greene’s book from BiggerPockets titled: “Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties.”
Understand that, if you are looking into investing in a different market for fix and flips, you need to build a strong network of partners in that area, including realtors, contractors, and lenders.
The top real estate markets for fix and flips in general, based on a full range of factors, can change over time (and may be different at any one time, depending on who is doing the reporting and what variables they are using).
Here are some resources that can give you the most up-to-date information you need to find the best fix and flip market for your needs:
Wallet Hub published a 2021 study titled: 2021’s Best Places to Fix and Flip Houses, where they reviewed 172 U.S. cities using 26 key indicators such as market potential, cost, quality of life, median purchase price, and average home remodeling costs.
This report’s #1 ranking city for fixing and flipping houses is Sioux Falls, South Dakota. On the bottom of the list is Newark, New Jersey.
BiggerPockets, a real estate networking site, is an incredible resource where you can get first-hand information from realtors, wholesalers, and other investors—in just about any location you can name.
Finally, if you are looking for a super professional resource for studying fix and flip markets on an in-depth level, ATTOM is the place to go. They claim to have the “nation’s largest multi-sourced real estate property database featuring details on more than 155 million U.S. properties across 3,000 counties.” They publish market trend reports, offer webinars, and can provide custom reports.
OH, THERE’S MORE – MUCH MORE!
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