What Resources & Steps Should I Use To Identify House Flipping Hot Spots....

I would like to identify tools, resources, formulas I can use to research and discover hot areas quickly where to buy properties and sell them fast in my own backyard.


I hope to find out the following:

* Steady or rising real estate values

* Multiple offers on recently sold homes and homes currently for sale

* An influx of homeowners moving in from other areas

* A decrease in the number of homes for rent

* An increase in the number of homeowners in the neighborhood moving into bigger homes rather than moving out

* Older homes — homes built at least 20 years ago — and homes that generally require more rehab

* Areas with aging homeowners — homeowners who may be downsizing or retiring

* Visible updating in older neighborhoods — new roofs, aluminum replaced with vinyl siding, replacement windows, modern earth tone trim paint

* City improvements including street repaving, new street lights and street signs, and repaved sidewalks

If you are an Agent, Realist/MLS are great tools to start with. Proper use of the MLS will let see which houses have sold recently, how much they sold for and whether the buyer paid cash or financed.
If you are an investor it would be a good idea to find an agent to work for you.

One thing to keep in mind: be familiar with the area. You can end up with a lot of problems if you have to rehab a home in a bad neighborhood. Vandalism, Break-ins, etc can cost a lot out of pocket if you are not careful.

You could search the classifieds to look for current rents. There should be somewhere you can get statistics for specific areas that will be able to give you a lot of that information.

Also in Canada there are tax area houses. Basically you buy the house for what the tax arrears are. Then you can sell the house for a fair bit more.

Good Luck!!
www.realestatefirsttimers.com

Are we allowed to post website url? I use ziprealty.com; I am not an affiliate so I am not promoting this site. It does offer most of the information that you're looking for. However, at the end of the day, personal experience and familiarity with the target areas are priceless.

Firsttimers. Any chance you would mind sharing info about where you find tax arrears properties in Canada? This is new information to me. Sounds like something to learn more about.

It appears that Alberta probably operates about the same way as Ontario with regards to tax sales. Have a look at the Alberta Gazette each week to see any upcoming tax sales being advertised by the municipalities. Just remember that, for the most part, if there is a lot of value in the property then it will likely be redeemed prior to the sale date.

http://www.qp.alberta.ca/alberta_gazette.cfm?page=gazette_2010_pt1.cfm

Edit: it looks like the Alberta Gazette publishes bi-weekly.

I'm going to keep an eye on the Gazette to see what's out there. However, I am thrown off by this info from Alberta Municipal Affairs and Housing:

Reserve Bid and Conditions of Sale
Section 419
The council must establish a reserve selling price before it can auction a property. The
reserve bid is set at a level that is as close as reasonably possible to the market value of
the parcel.

Why is the world would I buy something at auction for market value? Much easier and smoother to shop MLS for an investment property at close to market value!

Maybe it works differently in Ontario?

They are the SELLER and you are the BUYER. Of course they want as high as possible and I want as LOW as possible.

I will go through as many offers as I have to until I buy at MY price.Be patient and make smart investment decisions.

I am in the business of buying homes cheap, rehab them and flip them. "Hot spots" do not concern me as much as getting the properties for pennies on the dollar. Of course, the location has to be livable so that there will be buyers, but since I don't hold them, real estate trends are secondary concerns for me.