For many real estate investors, the idea of buying a dilapidated property, putting in some labor and flipping it for a profit is a dream. But like any type of investment, you need to proceed wisely. Fixer uppers offer exciting opportunities for investors at any level, but this type of investment also requires skill and knowledge. For example:
- You can’t underestimate the amount of time and money that comes along with flipping a house and there are almost always surprises that come up during renovations.
- You need to know the real estate market. Up-and-coming neighborhoods may offer a great ROI, but you also don’t want to invest in a neighborhood where no one wants to live.
- You need to know what you’re capable of. If you’re handy, doing repairs and renovations yourself will likely up your profit potential. But if you need to bring in professionals, you’re likely going to reduce the amount of profit you make on the home when you sell.
If you’re willing to take on some of these challenges, you may want to consider investing in a bank-owned property, also known as real estate owned property (REO), to fix-and-flip. Bank-owned properties have the potential to be a lucrative investment because investors can typically get a good deal as banks are looking to offload these assets quickly. Hubzu makes the process even easier by offering a platform where investors can find and bid on bank-owned properties to add to their portfolio. If you’re looking to add a fix-and-flip property to your portfolio, why not consider these 10 markets that have a high percentage of bank-owned fix-and-flip properties available? Start your search today!
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Methodology
Hubzu identified and analyzed metropolitan statistical areas (MSAs) with over one million people. Data was retrieved from October 1, 2018 to October 1, 2019. The MSAs were then sorted by those that had the highest percentage of likely REO fix-and-flip properties.
