I would have to say the higher the property values the higher your profit. I mean your not gonna make 50K on a 55K house. So Logicaly thinking the more money at risk the more profit.
A lot of it will depend upon local prices. Where I live a 200K house is very nice.
I have one client company that wants to hire me full time. But 200K is middle of the road nice.
In some areas 200K will get you a lot with a burnt out crack house.
So the numbers just don't mean much on a national basis.
I have made good luck in middle class neigborhoods. But I know people who do very well in very bad areas. Where I live that is where the money is to be made but I don't need the headaches.
if you will look for them, you can find them in all price ranges. If I were to stick with one price range i may miss that great deal that just fell in my lap, i look at everything. a deal is a deal
cashman is right. Strictly speaking, a cash number doesn't mean much on a national basis because $200K in different areas will be different type of homes.
Generally speaking, you'll make your money faster in the middle class areas, and probably lower middle class. The reason is that is where the majority of first time buyers, and problem credit buyers will look.
Will you make more money in the upper class homes or lower class homes? Probably yes, though with both, you're limiting the type of buyer that will seriously look at the home, so you will have to wait longer to sell.
I was curious as I have worked in SLC and you can buy homes for 120-270K in the median range. My builder frineds in Park City are building homes for 300K on 300K pieces of dirt and claiming they are sold at 1 million before the carpet is laid
Her in Birmingham,Al. we have a small city Mountain Brook,Al. where people are buying 1,000 s.f. houses for $300,000.00+ tearing them down and replacing with 6,000-10,000 s.f. houses costing a $1,000,000.00+.
I would have to say the higher the property values the higher your profit. I mean your not gonna make 50K on a 55K house. So Logicaly thinking the more money at risk the more profit.
Generally I would agree but I have cleared 100K on a 35 K house (once) ix years ago.
I was sure this would generate more excitement. I better not go into advertising!
A lot of it will depend upon local prices. Where I live a 200K house is very nice.
I have one client company that wants to hire me full time. But 200K is middle of the road nice.
In some areas 200K will get you a lot with a burnt out crack house.
So the numbers just don't mean much on a national basis.
I have made good luck in middle class neigborhoods. But I know people who do very well in very bad areas. Where I live that is where the money is to be made but I don't need the headaches.
if you will look for them, you can find them in all price ranges. If I were to stick with one price range i may miss that great deal that just fell in my lap, i look at everything. a deal is a deal
John
cashman is right. Strictly speaking, a cash number doesn't mean much on a national basis because $200K in different areas will be different type of homes.
Generally speaking, you'll make your money faster in the middle class areas, and probably lower middle class. The reason is that is where the majority of first time buyers, and problem credit buyers will look.
Will you make more money in the upper class homes or lower class homes? Probably yes, though with both, you're limiting the type of buyer that will seriously look at the home, so you will have to wait longer to sell.
Roger
I was curious as I have worked in SLC and you can buy homes for 120-270K in the median range. My builder frineds in Park City are building homes for 300K on 300K pieces of dirt and claiming they are sold at 1 million before the carpet is laid
Her in Birmingham,Al. we have a small city Mountain Brook,Al. where people are buying 1,000 s.f. houses for $300,000.00+ tearing them down and replacing with 6,000-10,000 s.f. houses costing a $1,000,000.00+.