Properties for flipping

[bobbyj]

Does anyboy have any ideas on where to look for undervalued real estate to rehab and "flip" for profit? Something besides the obvious foreclosures. For instance, I know the city I live in owns a lot of residential property for one reason or another, but I have no idea who to contact about purchasing it. Any ideas???

In addition to having my real estate license, I have done residiential contracting for a little over a decade. I am also a licensed Master Electrician. I think I could be good at rehabbing properties for profit if I had some good sources for the properties.

I'd love to hear your ideas especially if you have experience in this area.

[GeorgeW]

A friend of mine is a very experienced flipper - although he now owns a business based around "home disaster restoration". Thus, he has a large amount of experience with restoration, and previously flipping as well.

We both agree that in the current market, flipping may not be in your best interests as flipping works in a rising market, but can be hazardous in a market that is topping out or falling.

Flipping a house is based very much on what the market will bear, and what kind of deals you can find. My realestate goals are different in that I would never flip a piece of property unless it provided me a substantal chance of a good return. I personally prefer to generate passive income via tennants. But then, I see this differently.

[coastal]

I check the MLS every morning when it is first released. I'm usually one of the first to find good deals in my area. That being said by the time it hits the MLS it is usually old news.

The best deals I've found never make it to the MLS.

Divorce and death are the biggest reason people sell. Check the newspaper divorce section and make some phone calls.

[coastal]

Also, Low Ball offers work pretty well if the property has been on the market long enough. If someone is desparate enough you may knock off 30% or more of the asking price.

[GeorgeW]

I must agree with Coastal on this - the best property I ever found was actually a private deal where the seller was extremely motiviated to sell due to bad tennants.

The property sold for the same price that the owner paid for it 4 years prior! She made no capital gains as she was desperate to divest herself of the property because the tennants often missed payments.

When we took over the property, we merely complied with the local laws, and presented notification each time rent was late. After three late months (actually non-payment that has since gone to arbitration) the previous tennants were evicted. There was some bad property damage, but we fixed the place up, and were able to get new tennants who brought in $300/month more than the original tennants (not counting adjustments for non-paid rent.)

In the end, the neighbours thanked us for getting in much nicer tennants and improving the property as a whole. This property now has a very attractive ROI, and has appreciated in terms of capital gains by a large amount.

[jessiesc]

If you have your financing already established, one of the best places I have found is the court auction.

Most courts (clerk of the court) have a website that publishes the foreclosures and tax lien sales. You go to the court house and bid on a property.

But as the others have said, the MLS is also a very good source.

Just a suggestion

[chrisblanks]

Does anyboy have any ideas on where to look for undervalued real estate to rehab and "flip" for profit? Something besides the obvious foreclosures. For instance, I know the city I live in owns a lot of residential property for one reason or another, but I have no idea who to contact about purchasing it. Any ideas???

In addition to having my real estate license, I have done residiential contracting for a little over a decade. I am also a licensed Master Electrician. I think I could be good at rehabbing properties for profit if I had some good sources for the properties.

I'd love to hear your ideas especially if you have experience in this area.

try a search on the web for rehab or flip

[Homesurfer]

Flipping, in my opinion, is a place for professional investors or those who can afford to lose money if a deal doesn't go right. Otherwise, one bit of bad luck and they are looking for someone to blame.

YOu don't have to be wrong to be forced into settling a law suit. I've seen lots of agents in that predicament, usually with inexperienced investors who think they know more than they do.
.
.

[ResaleBroker]

Flipping, in my opinion, is a place for professional investors or those who can afford to lose money if a deal doesn't go right. Otherwise, one bit of bad luck and they are looking for someone to blame.

YOu don't have to be wrong to be forced into settling a law suit. I've seen lots of agents in that predicament, usually with inexperienced investors who think they know more than they do.

Spot on Terry. I could post more but I might go on a rant about not so savvy "investors".

[vtalerico]

I've come to find out, that Ralieh North Carolina is undervalued and ready to appreciate more than most other areas in the future...so I would consider looking into that part of N.C.