I represent three clients who are looking at homes that are short sales and/or bank-owned in Oakland so we're actively looking. Believe me, there is no shortage of such properties right now since they seem to be about 25-30% of all homes for sale. And yes, we've found some real interesting properties in Maxwell Park, Upper Laurel and Temescal.

Do note that the values of homes that are not being foreclosed in the same neighborhoods are negatively affected when similar homes sell at lower than market prices. In time, these low prices become THE market prices.

If you find a total contractor fixer and you're willing to invest the sweat equity, maybe by the time you sell it, the market environment would have changed. Today, if you were to buy a home with the intention of flipping, you may have to wait 2 + years or so for the market to right itself. Know when to hold 'em and when to fold 'em.

Sun May 11 2008, 01:13

It definitely depends on the neighborhood. I just closed on a property that my client flipped and he made around 100k in 6 months. That suites his needs. So, I would say it depends on the investment you are willing to make and what you are looking to get out of it. I have been working with this particular client for several years now and he his is successful. Please feel free to contact me if you have any further questions. I find it helpful to communicate via phone or in person. I can be reached at 510-280-2183. ~ Thanks Julia

Wed May 7 2008, 10:44

I feel now is not the time to get into flipping homes. Depending on the city, it will take 2 to 10 years to build equity. You missed the market.

Thu Jan 31 2008, 22:14

I run a website devoted to flipping homes, and even I would have to admit now may not be the best time. However, their are opportunities for investors. Just gotta be extremely careful when selecting the property and have a EXCELLENT exit strategy should your house flip go wrong. (I don't mind holding my homes as rental units and make sure the CAP rate on anything I buy for a flip is extremely high)

Shameless Plug - Stop by our site if you have questions, we were mentioned by the trulia folks a few months ago on the truliablog and at Real Estate Connect.

Fri Jan 25 2008, 21:47

Ryan, I don't mean to be rude, but:

HAVE YOU BEEN LIVING UNDER A ROCK FOR THE LAST SIX MONTHS?

Tue Jan 15 2008, 20:56

North Oakland,Laurel district and Maxwell Park!

Mon Jan 14 2008, 13:52

Flipping can be risky and if you plan on entering this arena you will want to do your homework. There are more bank owned properties on the makret and pices have soften, but you really need to evaluate each house before you consider a flip.

With the lending industry tightening the requirements to borrow money you may have a difficult time finding funds to purchase a flip as well. (It will depend if the property is a cosmetic flip or need more work).
There are some that feel that flipping in only higher end areas is worth while, but I do not toally agree with that view. I think that if you find the right property at the right price, are smart about the improvements that are made to the property (ie. don't over improve the the neighborhood) and sell at an agressive price, that a flip in most neighborhoods can be successful.

Flipping is not for the faint of heart. You must know what you are doing or have a contractor you know and trust. Do inspections! You will want to know the condition of the proeprty before you purchase. Have a budget and stick with it. When you sell, don't overprice it. You must be prepared to potentially only break even or potentially take a loss.

There is no guarentee with flipping, but when done thoughtfully with full knowledge of wha you are getting into, it can be a successful venture.

If you would like to discuss further, please don't hesitate to contact me.

Lisa

Sun Jan 13 2008, 12:44

Hi Ryan;
Unless you are very experienced, and you own a construction company, I do not think it is a good time to start buying and flipping homes in Oakland.
One of the factors in a successful flip is time. The time from buying the home, restoring it to a salable condition, and it will have to be very good with all the available homes in Oakland, to the time you sell and close on the home has to be as short as possible. Once those mortgage payments start, insurance, taxes, they all eat into your profit.
The market is slow in Oakland. By the time you are actually able to find a buyer and sell the home, you may be looking at some very small profit margins, if any at all. It may be up to a year before flipping homes in Oakland start to make sense again.
Of course there are always exceptions to the rule. If it is a home in a very desirable area, like your area in the Rockridge, and if it is a very good restoration, you may have something. If you have a specific property in mind, or if you want to discuss this further, please feel free to contact me.

Eric H Wong
Prudential California Realty
eric.wong@prurealty.com

Sun Jan 13 2008, 12:17