Real estate flipping has gained immense popularity in recent years as an investment strategy that promises lucrative returns. However, the success of this investment depends on various factors, with finding the right property in the right location being the most critical. In the year 2023, the real estate market is expected to be highly competitive, and identifying the perfect property to flip can be a daunting task for any investor.
That’s why in this article, we will explore the top 10 strategies for finding the right properties to flip in 2023. We will discuss various techniques that investors can use to identify potential properties that will yield significant returns. Moreover, we will also highlight the best areas to focus on when searching for flipping properties, including up-and-coming neighborhoods and hot markets.
Real estate flipping is a popular investment strategy that can offer significant returns. However, the key to success in house flipping is finding the right properties to invest in, in the right areas. Below are the top 10 strategies for finding properties to flip in 2023 and the best areas to focus your search:
Top 10 Strategies for Finding Properties to Flip
- Online Real Estate Marketplaces: Websites like Zillow, Redfin, and Realtor.com are great starting points for finding properties for sale in your area. These websites allow you to search for properties based on specific criteria, such as price, location, and number of bedrooms, making it easy to find potential flip properties. Focus your search on areas with a growing population, low unemployment rates, and increasing property values.
- Real Estate Agents: Working with a local real estate agent can be a valuable resource for finding properties to flip. Real estate agents have access to MLS (Multiple Listing Service) databases, which are updated in real-time and include detailed information on properties for sale. Ask your real estate agent to focus on finding properties in up-and-coming neighborhoods or areas undergoing revitalization.
- Foreclosure Auctions: Foreclosure auctions are a great way to find properties to flip, as these properties are often priced below market value. You can find information on foreclosure auctions in your area through the local county clerk’s office or online resources such as Foreclosure.com.
- Networking: Building a network of real estate investors, contractors, and real estate agents can help you stay informed about potential flip properties. Attend local real estate investment clubs, join online forums and social media groups, and connect with other real estate professionals to expand your network.
- Direct Mail Campaigns: Direct mail campaigns are a proven way to generate leads and find properties to flip. You can send direct mail campaigns to house owners in areas you are interested in flipping properties, offering to purchase their properties for cash.
- Tax Sales: Properties with delinquent property taxes may be sold at tax sales. These properties can be a good opportunity for flipping, as the owners are often motivated to sell quickly to avoid further penalties and interest on their delinquent taxes. You can find your area’s tax sales information through the local county treasurer’s office.
- Estate Sales: Properties being sold as part of an estate sale can also be a good opportunity for flipping. These properties are often priced below market value and can be a good investment if they are in good condition and located in a desirable area. You can find information on estate sales in your area through local newspapers and online resources such as EstateSales.net.
- Bank-owned Properties: Banks often sell properties they have acquired through foreclosures, and these properties can be a good opportunity for flipping as they are often priced below market value. You can find information on bank-owned properties in your area through the local bank or through online resources such as RealtyTrac.
- Neighborhood Drives: Take a drive through the neighborhoods you are interested in flipping properties in and look for properties that are in need of updates and renovations. Focus on areas with a high concentration of aging properties, properties with deferred maintenance, and houses with outdated designs.
- Contact Private Sellers: You can search for properties on social media or by advertising that you are interested in purchasing properties in specific areas. Private sellers can be a great source for finding off-market properties that may not be available through traditional channels.
There are many strategies for finding properties to flip, but by utilizing these top 10 strategies, you can increase your chances of finding the right property at the right price. It’s also important to research each property and the surrounding neighborhood before investing.
As a real estate investor, understanding the local real estate market, the demographics of the neighborhood, and the future development plans can help you make informed decisions about where to invest. By considering factors such as crime rates, school districts, proximity to amenities, and property values, you can identify the best neighborhoods to focus your search for flipping properties.
Therefore, let’s dive into some of the things to consider when researching a property and its surrounding neighborhood before investing and explore the critical factors to consider when searching for the best neighborhoods to invest in when flipping properties in 2023.
Best Location To Focus Your Search For Properties To Flip
When it comes to finding the best neighborhood to focus your search for properties to flip in 2023, some of the things to consider include the following:
- Up-and-coming neighborhoods with a growing population and increasing property values: These neighborhoods are often identified by the influx of young professionals and families who are attracted to the area’s affordable housing, amenities, and proximity to job centers. As more people move into the neighborhood, property values tend to increase.
- Areas undergoing revitalization or gentrification: These areas may have been previously neglected or experienced a decline in property values, but are now seeing a resurgence in interest and investment. Revitalization efforts may include the renovation of older homes and buildings, new construction, and the addition of amenities that make the area more appealing to buyers.
- Areas with a high concentration of aging property in need of updates and renovations: These areas often have homes and buildings that were constructed several decades ago and are in need of modernization or repairs. Investors can purchase these properties at a lower price point and renovate them to increase their value and appeal to buyers.
- Areas with low unemployment rates and a growing economy: These areas tend to have a higher demand for housing as people move to the area for job opportunities. This can lead to increasing property values, particularly in areas with a limited supply of housing.
- Areas with high foreclosure rates and low property values: While high foreclosure rates can be a sign of economic distress, they can also present opportunities for investors to purchase properties at a lower price point and renovate them for resale.
- Properties located around government jobs: These areas may have a more stable value, especially during recessions. Government jobs can be a great indicator of a stable job market in an area, as these jobs often provide reliable employment during economic downturns. This stability can help to maintain property values, particularly in areas with a high concentration of government jobs.
- Neighborhoods with a high concentration of aging populations: These areas may present opportunities for investors to purchase properties from elderly homeowners looking to downsize or move into assisted living. With the right renovations and updates, these properties can be made attractive to younger buyers who may be looking for more affordable housing options.
Now that we have thoroughly examined the various factors to consider when searching for properties to flip, let’s delve into the top 5 cities that are poised for house flipping success in 2023.
Based on data from reputable sources such as Realtor.com, the National Association of Realtors, Redfin, FRED, World Population Review, Balance Everything, and CNBC, these cities have demonstrated strong housing markets, economic growth, and a plethora of opportunities for house flipping.
So, if you’re planning to invest in real estate in 2023, these cities should be at the forefront of your list when considering potential investment opportunities in real estate for 2023.
Top 5 Cities To Flip Houses In 2023
1) Atlanta, GA
Atlanta is a top city for flipping houses due to its growing economy and increased housing demand. Major tech companies have relocated their headquarters to Atlanta, creating job opportunities and drawing in new residents. This has contributed to the rise in median household income and demand for housing, making Atlanta an attractive city for real estate investors. Despite the slightly higher purchase price, the city’s affordable cost of living and high retention rate make it a promising location for flipping properties. In the last quarter of 2022, 85% of property buyers in Atlanta expressed their intention to stay in the city, with many of t0 those moving from New York choosing Atlanta as their top destination.
2) Hartford, CT
In Hartford, factors such as employment growth, economic development, and the local economy’s general health can significantly impact the housing market. Additionally, the supply and demand dynamics of the market can also play a role in determining the direction of property prices.
Consult with a local real estate agent or expert to better understand the market conditions and get an idea of which neighborhoods or areas may offer the best opportunities for house flipping.
3) El Paso, TX
The housing market in El Paso is thriving, with affordable prices and a fast pace of sales. On average, properties are being snapped up within just 24 days. In December 2022, property prices in the city increased by 9.3% compared to the previous year. This growth is partly due to the city’s proximity to the Mexico border and a U.S. Army installment, which keeps the local real estate market active.
About 40% of property buyers in El Paso paid for their property in cash or with Veterans Affairs loans, and most properties are selling for at or above their listed price, making it an excellent market for sellers. While other housing markets in the U.S. may be slowing down, El Paso is expected to continue growing.
This city has a seller’s market, good quality of life, and affordable properties. Real estate investors can take advantage of the lower initial investment costs and quickly add value to properties in El Paso, then sell them in this hot real estate market for a profit. El Paso is an attractive market for house flipping this year with a fast sale and an attractive lifestyle.
4) Jacksonville, Florida
During the pandemic, Jacksonville saw a surge in demand for housing as many people chose to migrate there, leading to a sharp rise in property prices – over 50% higher than the previous year. Despite this, the average property price in Jacksonville remains relatively affordable, selling for around $282,880, which is comparable to the national average.
The low unemployment rate and strong economy in Jacksonville, with a median household income that is likely not too low, suggest that buying power is high, and many properties are expected to sell for their listed price. The housing inventory in the city remains high, helping to keep property prices from soaring.
Property prices in Jacksonville are only predicted to increase by 0.8% in 2023, even with the expected interest rate hikes later in the year. Jacksonville is considered to be one of the top 5 hottest housing markets for 2023, and the stability of property prices provides real estate investors with the predictability they need to make informed investment decisions.
5) Charlotte, NC
North Carolina continues to be one of the nation’s hottest housing markets in 2023, and Charlotte is no exception. The high demand for housing in Charlotte offers real estate investors the opportunity to receive their asking price.
Property prices are only expected to decline slightly by 0.3% throughout 2023, providing stability for real estate investors. This is a significant contrast from the 11.8% rise in property prices that the city saw in 2022.
The recent decrease in mortgage rates is beneficial for investors in areas like Charlotte, where property prices are slightly higher. The National Association of Realtors’ chief economist, Lawrence Yun, believes that as mortgage rates drop, more people will enter the market, increasing buying power due to a higher median household income.
It is worth noting that a number of factors can influence real estate market conditions, and price growth predictions are only sometimes accurate. As with any investment, it is essential to thoroughly research the market and consider all potential risks and rewards before making a decision. Remember, the key to property flipping success is finding properties priced below market value and in good condition.
The Bottomline
This blog has provided valuable insights for all real estate investors and aspiring flippers. Whether you’re a seasoned pro or just starting out, the information covered here will give you the knowledge and tools you need to find success in the world of house flipping.
A flip project’s success depends on various factors, from proper planning and market research to access to the right financing. So with the right approach and support from a trusted lender like Pacific Equity & Loan, you’ll be well on your way to flipping success in 2023 and beyond! So what are you waiting for? Contact Pacific Equity & Loan today to learn more about our financing options and start your real estate journey with confidence.
Citation
“Best Cities to Flip Houses in 2023.” New Silver, 8 Feb. 2023, https://newsilver.com/the-lender/best-cities-to-flip-houses/.
“How to Find Cheap Houses to Flip in 2023 (Fast & Profitable).” Real Estate Skills, https://www.realestateskills.com/blog/how-to-find-houses-to-flip.
On the Horizon: Markets to Watch in 2023 and Beyond. https://www.nar.realtor/sites/default/files/documents/on-the-horizon-markets-to-watch-in-2023-and-beyond-12-13-2022.pdf.
