Neighborhoods and Flipping Houses

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You’ve found a few properties that you would like to check out to see if they are going to be your next fix and flip. They seem like the perfect deal from the photos…but you haven’t seen the property in person yet, or the neighborhood. The neighborhood is a crucial aspect of any property. A particular house may be the best deal of the week, but if it’s in a horrible location, good luck selling it once it has been flipped. On the other hand, if a property you’re excited about is across the street from a park, you may have multiple offers coming in.

Pros:

Schools nearby mean no more long drop-off and pick-up lines, a parents dream! But if you’re too close to a school, this may create heavy traffic during times you are trying to leave for work. Find a happy medium.

The School district that the home is in is very important to most buyers. Being in a high performing school district is always a positive.

Parks, open space and greenery within walking distance to a house can be a great bonus to the location.

Other houses in the area look updated. When surrounding houses have new windows and roofs this tends to be a sign of an up and coming neighborhood where other flippers have done work.

Cons:

Apartments in areas you are looking to flip a home are often going to be in poor condition and have tenants without home ownership values.

Duplexes/condos are similar to apartments, they are not going to be very nice, and may have a constant rotation of tenants. All of which can be a negative to potential buyers.

Dirt driveways, chain-link fences, are not great for curb appeal and can be a sign of a less than ideal neighborhood

Industrial located neighborhoods or anything near industrial areas of town can be loud and often have a bad odor. Avoid this.

Poorly maintained houses/yards with overgrown shrubs, dirt instead of grass, gutters hanging off the roof, are all signs of a neighborhood most buyers don’t see themselves living in.

Busy streets are never on someone’s wishlist. They produce noise and are an added danger that should be avoided.

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These and other negatives will turn off potential buyers, even if it’s the best deal, you’ll more than likely have difficulty re-selling it. Instead of a bad house in a bad neighborhood, go for the bad house in an up and coming or already established neighborhood.

Here’s a secret, when flipping houses give yourself all of the advantages and avoid any unnecessary risks like trying to sell a gorgeous house in a neighborhood with high crime rates. Head down the right path to a successful flip by following these tips on which neighborhoods and houses to avoid.

With anything in the fix and flip industry, use your best judgment. Do your research, visit the home at least once at night, be aware of your surroundings, and trust your gut. Would you want to live in that neighborhood?

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