Performing Market Research
Learn how to perform market research to narrow down your flip search and find your ideal flip project.
Here is a list of catalysts to look for when performing market research:
This sounds simple, but you want to flip houses where people want to buy houses. So identify areas that people want to live that are close to amenities, have highly rated public schools & low crime.
7. Good Public Schools
Good public schools help attract new home buyers and families that want to provide the best education for their children.
Check out Great!Schools to find ratings of local school districts in your area.
8. Low Crime
You don't want prospective home buyers to be afraid or concerned about crime issues in the area. Look up local crime statistics in your are to ensure your investing in safe neighborhoods.
Check out CrimeReports.com to Recently Reported Crime Incidents
If you are just getting started, it's best to start in a market that you are familiar with that is close to home. First start by researching your local market, and determine if it will provide a strong market for flipping. If not, move-on to greener pastures.
Narrow Down Your Search
Think of your market segment as raw farm land. You want to identify the best pieces of land to plant your crops and grow your business.
With flipping, the farm land is the neighborhoods and the crops are the houses where you will be focusing your time, marketing & investment dollars.
You want to focus on specific school districts & neighborhoods that you can nurture and grow your house flipping business.
Trying to focus on too large of a market will have you stretched too thin. Narrowing down your search and focusing on a specific segment of the market will help you develop a better pulse on the market, market values, competition.
Once your business starts to grow you can start to grow your farm area & expand your market reach.
Targeting Your Ideal Flip
Talk to your real estate agent to discuss the most in-demand property types in your market. Generally speaking, families will want a 3 bedroom home with 2 separate full bathrooms.
Sometimes properties with only 2 bedrooms & 1 bath provide an opportunity to add value by adding a bedroom or adding a bathroom, so don't necessarily limit your search to only 3 beds & 2 bathrooms.
Analyze the market to determine the price you need to pay for a distressed property to be profitable.
Determine the extent of repairs that you want to take on for your rehab projects. Do you want to focus on just light cosmetic rehabs or will your niche be gut-rehabs.