Our last flip went perfect, a 70% LTV and we made a nice annualized return (tip #5). It was in a suburb just outside of a great rental area and before you get to the nicer suburbs. We categorize this as a high end blue collar area (tip #1) which are perfect for flips and/or rentals. REO sales are in the 30s with retail sale ranging from 80-130K which shows a huge discount for REOs (tip #2). The best part is there was only 1 for sale property in the neighborhood compared to 4 sold comps (tip #3) and there was definite pride of ownership with few rentals (tip #4).
5 Tips for Where to Flip: