America's Largest Social Network for Default Real Estate Professionals
Which type of neighborhood is best for flipping homes?
When looking for an investment home that you eventually intend to flip it is important to remember that the location is just as vital as the actual home. It is feasible to earn a profit in nearly every area but certain areas make it easier on the investor.
When people pick out an automobile they focus on the features that are important to them and their current lifestyle. In a similar manner, you can consider the following neighborhood features when considering an investment property:
Three Types of Areas to Examine
In order to assist you in determining where to look for the right homes, here are three types of neighborhoods to consider.
Keeping Your Ear to the Ground
Some investors like to focus on their own zip code or a nearby area. This makes it easier on them because they already know a bit about the location. There is no long distance commuting to check out a potential property. Sometimes, neighbors can actually provide a good tip that leads to a purchase. And the local gossip is usually easy to find.
However, this only makes sense if the area is holding steady or rising. A neighborhood suffering from falling values, crime, or an imminent new highway is not a good choice, no matter how close it is.
Don't Get In Over Your Head
This should come as no surprise, but it is also important to remember your financing. Finding a great home at a 40% or 50% discount is worthless if the home is $50,000 more than you can afford. Always keep the price in the forefront of your mind since it is a very important piece of the elimination process. If a neighborhood is out of your price range, focus elsewhere.
Following a well-designed plan is important for almost everybody. Building a business, planning a party and even putting together a family vacation all work more smoothly when there is a good plan in place. Buying a home for flipping is no different.