When planning your next flip, you may look into several neighborhoods and hundreds of potential properties before you choose one to purchase.
But when researching specific areas, how do you know what to look for in a flip property neighborhood? Let’s examine a few top things to consider when choosing your fix-and-flip property to ensure a triumphant profit return.
Crime Rate
Crime rates are a critical factor to consider when looking at a property. Flipping an estate in a high-crime area can reduce your potential to make a positive return and even be dangerous for you and your team.
To ensure your property is worth flipping, research the crime rate in the specific neighborhood you want. You can do this by looking into crime mapping websites that provide detailed information about the area you’re interested in.
Growing Businesses
Take a drive around the neighborhood you want to invest in. How does the area look? Are there businesses closing or opening? A community has significant potential for new homeowners if the area is actively growing and improving. Remember, new businesses lead more people to be interested in living nearby.
Quality Schools
Most families looking for a new home are interested in which neighborhoods have the best schools to enroll their children.
Try researching the top three schools within a 20-minute driving distance from the property you’re looking at. Be sure to include colleges as well; young adults might be looking for a new place as they start a new semester at their new university.
This will help you determine if the property is best for families or if you should market it to young adults when the property is ready to sell.
Additional Properties on Sale
When driving around the neighborhood, be sure to look for any additional properties that might be on sale. If there are more than you deem normal as a real estate investor, there might be something going on in the area that you can’t see.
You want to ensure you’re flipping a property that people will want to buy and be safe living in.
If everything checks out and the neighborhood seems safe and ready for new homeowners, you might benefit from private real estate loans. These loans can help you fund your next project and receive a nice profit.
Now that you understand what to look for in a flip property neighborhood, you’re ready to begin your fix-and-flip process and build a property you’re proud of.
