We work with quite a few investors, local and from other countries. Purchases vary per investor.
The investors that I have that are purchasing from (Canada, China, and Australia) generally are staying below $100,000 and are renting the homes out. Prefering 3+ bedrooms, unless it gets on the low side then they will pick up townhomes but they want 2 bedrooms+ to keep vacancy factor low (1 bedroom condo/townhomes have more turn over in tenants). As far as the areas, this will vary, good areas that will pull in the best rents for what they are picking up the homes for. There are quite a few areas that are great for investors. Generally they don't go out to the far outskirts because they want a larger source of people wanting to rent the home and as you go out you get less activity.
The local investors are not only picking up homes to rent, but we also have several picking up homes to flip. They do purchase homes below $100K, but they also pick up homes over that as well. It just depends on the "deal" and what needs to be done and what they can sell it for. They usually prefer homes that don't need to be gutted, but for the right price they even purchase these. The lower priced homes usually work great, but they will go higher. Not upper end, but one of the last purchases they picked it up for over $200K and put $60K in it and sold it for $65,000 profit above their fix up costs. They don't all go this well of course! Some are only netting $10K. So if you are looking to pick up homes and sell to the investors, then it needs to give them a decent profit to be made or a good enough purchase for rental possibilities. They won't buy on the high side ever.
The amount a rehabber/flipper is willing to put into the home does vary, but many of them are willing to purchase, put in a quick $6K to $10K and make a $12 - $15K true net profit on it. However, there are times they end up with a $30-$40K profit also.
Hopefully we will be able to do some business together!
Brenda and Ron Cunningham
602-980-3133 / 602-499-0694
Recognized in the Phoenix Business Journal as on of the Top 50 Realtors in the Valley (July 2010)