If you’re looking for that next fix and flip investment, it makes sense to consider a project closer to your home or work. Investing in different markets has its benefits, but easy access can mean a shorter commute to the job site (traffic is never enjoyable), greater familiarity with the market and potential buyers, and easier access for project management.
Easier to Inspect the Property
Have a property in mind? Go see it! Not seeing your next flip before purchasing makes it harder to develop a plan with your lender, contractor, and other partners. Inspecting the property helps determine a purchase price and develop a budget to address visible concerns such as a roof repair or replacement, and other interior or exterior issues. Third-party inspections are important, but there is no substitute for walking the property yourself.
Your Knowledge of the Neighborhood is an Asset
An out-of-town flipper likely will not possess the intimate knowledge you have as an investor living and working in the community. Used wisely, this advantage can lead you to find the best deals in the neighborhood to turn that distressed property into a gem. It can help you know the up-and-coming markets for flipping, ideally increasing your profits and building a track record of success with your investors for future projects.
On-Site Communication is Possible
As a hands-on fix and flipper, managing the renovation is an important aspect of success. Clearly stating the expectations to your contractors and lender is critical. Visiting the investment site to ensure those communicated goals are met and that the project is going as expected increases the probability for success.
Access to Local Real Estate Agents
Building a relationship with a local agent has benefits including finding potential investment properties as well as knowing the local market. They have access to potential homebuyers looking in your area. Equally important is their understanding of laws and regulations, dealing with closing costs, and helping to market your listing.
Network with the Key Players
As a local, it is easier to join organizations, attend meetups, or be a part of social media groups to network with community members who are an asset to growing your business, finding properties, and identifying potential buyers.
What’s the Takeaway?
Investing time and money in fix and flip projects is a serious commitment. Working locally allows for more supervision over the renovation budget and progress.
Have a fix and flip project?