Better to flip in cheaper area or more expensive area?

[1RaZoR1]

So I’m debating right now on buying and renoing up a home in say NE and SE purchase price say 200k-300k and investing 50k vs buy and renoing SW or NW purchase price say 450k-550k investing 100k. What’s your guys take?

[ExtraSlow]

It's important to know if the market is moving up or down to answer that question.
When the market is hot, the more expensive the place the better. When it is stagnant or moving down you want to be at the lower end.

No matter what the market I recommend buying the shittiest house on the block though. Spend you intital investment on things that can't be changed like location.

[HiTempguy1]

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It's important to know if the market is moving up or down to answer that question.
When the market is hot, the more expensive the place the better. When it is stagnant or moving down you want to be at the lower end.

No matter what the market I recommend buying the shittiest house on the block though. Spend you intital investment on things that can't be changed like location.

Also have to factor in the risk you are willing to assume.

End of the day, the market on the low end is larger than the market on the top end. There is always somebody looking for a $300k house, not the case with $600k.

But I think reno'ing is an awful idea. I don't think there is value in that personally (having reno'd many a place and helped buy and sell houses). Home buyers are also being VERY picky right now, they have lots of leverage and there are plenty of choices out there.

[mr2mike]

But HGTV shows me it's very easy to make baller $$?!?


I can say, I walk into a home to buy and if I see they've done light fixtures, paint and hardwood then price at $100K above comparables. I walk. I ain't paying for something I could do myself and also I'd know it was done properly, not a slap and flip.

[ercchry]

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But HGTV shows me it's very easy to make baller $$?!?


I can say, I walk into a home to buy and if I see they've done light fixtures, paint and hardwood then price at $100K above comparables. I walk. I ain't paying for something I could do myself and also I'd know it was done properly, not a slap and flip.

You are in the minority... this city is ridiculous, everyone wants something that looks like a brand new build... and they are willing to pay for it, either in money to be closer to the city, or in their time buying an actual new build way out in the sticks

There has been so much new construction for so long in this town, that it’s become the standard for so many people

Even before the recession there was insane deals to be had on any place that wasn’t perfect, and it really is as easy as new floors, paint, counters and appliances to all of a sudden have something you can sell at a profit and quickly

People are shallow, and lack any real skills these days

[JordanLotoski]

Best areas to flip homes in

Wildwood
Varsity
Dalhousie
Lake Bonavista
Willow Park
Haysboro
Palliser
Brentwood
Charleswood

Let me know if you need some help.

[mr2mike]

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There has been so much new construction for so long in this town, that it’s become the standard for so many people.
People are shallow, and lack any real skills these days

True. Now that I think, most married friends won't settle for something reno'd and nice. They want new.

[Tik-Tok]

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True. Now that I think, most married friends won't settle for something reno'd and nice. They want new.

And then complain about their commute times, while defending them in the same breath.

The only new build I want, would replace a derelict house on a 700+sq.meter lot in a well established community. Built by a respectable custom home builder.

[Xtrema]

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So I’m debating right now on buying and renoing up a home in say NE and SE purchase price say 200k-300k and investing 50k vs buy and renoing SW or NW purchase price say 450k-550k investing 100k. What’s your guys take?

I would do this if you are in the reno business and business is slow. You are basically risking your own capital and bought yourself a job and to improve your skills. The market isn't growing that quick, your profit is basically sweat equity.

And you better know what you are doing, I have seen many house ruined by owners' DIY projects.