Thanks for asking this question. It is another great one that should be addressed so I appreciate the opportunity to be able to share.
First, I will let you know that my answer does change if you are talking about anything other than wholesaling/bird dogging, but since you are specifically addressing wholesaling here is how I see it.
You will want to go back and look at the number of cash transactions and other investor transactions in that neighborhood over the last 3 to 6 months to see what type of buying (and selling) activity there is. If you plan to wholesale, one of the most important factors is are there buyers for the properties that you will be controlling and wholesaling for fee.
With many title companies you can go to them and ask for them for a list of the closed transactions in that market with all the extra data. For example, the extra data includes stuff like the type of transaction, lender information (another good way to find hard money and private lenders by the way), who bought it and was it an owner occupant transaction or absentee owner transaction.
This is some really useful data to have.
As you compare this data to other neighborhoods you are considering buying in, you can quickly see how many people are buying (and who they are). If you’re cautious, you may want to reach out using the phone company’s 411 service to the buyers and find out if they are buying more or why they are buying. These are potential wholesale buyers for your list anyway and it would be well worth the time to talk to bona fide buyers that will ultimately be buying your wholesale properties to find out their buying criteria.
A little time and effort invested here can prevent you from some awkward moments with sellers on properties that you’re not able to wholesale like you imagined without having talked to buyers.
If you are finding a bunch of properties for sale in that neighborhood and few actual investors buying and/or few actual investor transactions buying in that market as compared to other neighborhoods you are considering, I’d look at the other neighborhoods to go were I am likely to have the highest probability of success.
You can fight the trend and market, but if it will be much easier in another neighborhood, why not go where it is easier?
I really hope that helps. Please do let me know if it does not or if there is anything else I can do to help.