Four Markets Ripe for Guts Jobs

October 11th, 2018

Think Realty Radio Podcast Review

On today`s show host Abhi Golhar interviewed Carol Ellis about an article from Think Realty Magazine called “Four Markets Ripe for Gut Jobs”. I had already read the article, so the podcast wasn`t much of a surprise, but it was still an interesting conversation.

Gut jobs will cost you at least $100,000 in almost any market and could cost $150,000 or more. Carol suggests finding a mentor if you haven`t done a gut job before.

The four markets best for gut job properties were:

1) Chicago – The age of the housing stock in Chicago is over 40% older than 1960. That is useful in finding old houses to flip and those properties can be purchased for 79% less than fully renovated houses. Zombie foreclosure and vacant homes are available at auctions in Chicago making properties easy to come across.

2) Detroit – Everyone knows Detroit has lots of homes needing flipping. It is also the location with the lowest retail value after repairs in the list with an average sale price of $261,000. Half of Detroit`s homes need help however and can be purchased for 59% of the after repair value.

3) Baltimore – As a native to Baltimore this one doesn`t surprise me, but the fact that anyone would want to live in Baltimore does surprise me. However, with a nice old inventory (40%) and strong home appreciation, this is an up and coming city worth looking at.

4) Houston – This is the only city on the list where the opportunity is limited. There are still tons of houses needing gut jobs from the hurricane and if you can get in now, you could make a healthy return.

Just remember, when going into a total gut job the budget is important. You won`t have the option of not finishing once you get started, so make sure you get the numbers right.

Casey Ryan Richards
http://www.CaseyRyanRichards.name