I think you have it right. Different areas different things might work. I think Irwin is in So CA, where everything is high-priced. Myers is in Albuquerque where there are lots of low-priced properties and not many high priced ones, I think.
Also, it is probably a good idea to start with smaller projects, which suggests lower-priced ones to gain experience before taking on a big project with possible risk for a lot of money invested. After you have done a couple of smaller deals, perhaps you will want to move upscale. Some do, some don’t. I have had only a couple of middle-class rentals, all mine are in below-average and below-below average neighborhoods. I’ve felt no desire to “move up.” You might.
I’ve read both of these books:
Find It, Buy It, Fix It by Robert Irwin (1996)
Buy It, Fix It, Sell It: Profit by Kevin C. Myers (1997)
and I noticed that Irwin recommends going for more expensive properties (even large multi-unit apartments and commercial buildings) because for the same amount of work you can make bigger profits…
But Myers says stay away from more expensive properties because there are too few opportunities and market risks are too high (like not enough buyers, depreciation, etc).
I guess either statement could be true/false depending on the local market.
Does anyone here have any recommendation from your own experience?
My favorite rehabs are apartments of 5 to 20 units because they are so easy to buy at a discount (no one else is bidding) and they are safer and easier to make a profit on, mainly because you have strong positive cash flow.
I will admit that if you want to flip quickly, they are slower to get rid of. But you have that pos cash flow where single units have negative cash flow so holding them a few more months doesn’t hurt as much as you might think.
You might also like to know that Robert irwin is a hack writer who has churned out dozens of real estate books, while Kevin Myers has actually done what he purports to have done, or so I am told.