If you’re a fix and flip real estate investor, you know your profit hinges on finding the right deal, financing, and contractor. You’ll need to decide what repairs need to be made, value the property, oversee the repairs, then maintain it until it is sold. So where do you begin?
The key to a successful fix and flip investment is finding the right location where you will be able to sell quickly and make a profit. Some of the hottest, up and coming areas for doing just that can be found on the west coast.
Los Angeles: Orange County, Highland Park, Faircrest Heights
Los Angeles is one of the most profitable areas on the west coast for fix and flip. Veteran house flippers in this market saw record investment incomes in 2017, and have been enjoying great success ever since. The Orange County Register reported profits averaging nearly $135,000 per flipped home in Los Angeles County, the highest in the region.
Highland Park is one notable up and coming Los Angeles neighborhood, located near the downtown area, and featuring trendy art galleries and cafes. Faircrest Heights is another, located on the west side of LA along the Pico-Fairfax Corridor. It has been named as one of the top ten up and coming neighborhoods in the country.
Fresno, CA is also proving a quite lucrative option for fix and flip ventures. With a median home list price of $311,700 and a 3.5% ratio of flips to all home sales, it has an average flip profit of $53,200 in 2018.
Medford, OR is another hotbed for fix and flip investing. Situated just north of California, this beautiful city is perfect for those who prefer the great outdoors. The economy is low-key when compared to larger metropolitan cities such as San Francisco and Seattle, which, according to Realtor.com, means “flippers are geared toward a different group of buyers.”
Because Medford also attracts a lot of retirees, the aim of flippers is to make the home eligible for VA or FHA loans. The West Medford area is among the most prevalent neighborhoods for flippers, who can purchase fixer-uppers in the $150,000 range, then sell them at a higher price.
Finance Your Deal
Though flipping on the West coast can be very profitable, it is crucial to pay close attention to what is going on in the market around you. When you are ready to complete the purchase consider a private or hard money loan as an alternative to conventional financing. For faster turnaround and an easy application process, work with First Capital Trust Deeds.