Whether you find yourself in a large metropolitan area, or a small town, each area comes with different perks for house flippers. The connections that you can make in larger cities can come back in droves of value. In a city like Philadelphia, there is no shortage of real estate meetups. Not to mention, the deals are plentiful! Naturally, in a larger city, you are more likely to come across more deals. The more "no's" lead to that "yes", right? I hope so!
Mid-west House Flipping
How does the mid-west of the United States differ from more populated areas? Of course, there are fewer people. A local house flipper and owner of Shawn Buys Houses KC had a few inspiring things to say about the Missouri market. "Kansas City is flying under the radar. Prices are affordable for flippers, which allows a low barrier to entry. Houses are typically not in terrible shape, which helps keep costs down and profits high after a flip." Kansas City is known as a great market for flips.
Investing in Larger Cities
On the flip side, there are great opportunities in larger cities to earn money in real estate. A great example is Phoenix. Since the houses there are not nearly as houses in places like Boston, the renovation costs don't vary as much. This gives house flippers and investors a huge advantage. It is safe for them to assume that their flip will cost them within a certain range that doesn't vary as much.
It is the complete opposite for places like Philadelphia, PA. The houses are extremely old. Some of them reach over +100 years of age. That is old! Dealing with this comes with its challenges. Buying "sight unseen" is harder to do since walkthroughs can be a tell-all about the actual value of the property.
Where is the love?
Is there still love for old cities like Philadelphia for real estate investing? There sure is! House flippers are flooding to Philly like nobody's business. Due to the pandemic, people from NJ and NY are coming to reap the benefits of affording housing relative to their home states. There is an opportunity in these places, without a doubt! Don't sleep on an old city like Philly.
If you are looking for affordable flips, the mid-west is a good place to start. The prices do not fluctuate as much, which helps mitigate risk. There is an opportunity out there for us all!