Found My Interest in Gentrification-Tips/Insight for Newbie?

Question

I've been listening to the podcasts and audiobooks everyday for a solid month now, and dove into viewing low-income area properties with decent knowledge and proper resources in place for flipping. This is a new field of work for me (engineering degree), and have really enjoyed learning from hearing peoples experiences flipping, but have not gotten much insight from peoples experience/lessons learned with investing in up and coming areas for multifamily home flips. Any tips, tricks, recommendations, things I should know as I dive into this venture from your experiences?

Thank you!

Dawn Brenengen · Answer

@Angela Dani One thing to know about investing in these areas is "gentrification" is typically seen as a bad thing for communities overall, so I would make sure you understand the term and the impact and not use the word to express something you WANT to do. I saw a RE Agent get totally blasted in my area when she said in a listing "Great home in a rapidly gentrifying area!"

As investors, of course we are looking to upgrades homes in communities and elevate the desirability of areas, but there is an impact to that too.

Blake Hulett · Answer

I would look at joining a bp mastermind, reia, or other investors group! There is a lot to learn and tons of people out there who love teaching people who have the energy to go get it! Just be wary of people who want you to pay a lot for a course or something like that, it's typically better to use your money to invest and learn by doing. Some people disagree with that though, so it's really up to you! Also, join some FB investor groups, connected investors, and any other community you can find. It is a team sport, and most people in this industry are very nice and helpful! Also, my job is to find these deals in up & coming areas and connect investors in the Nashville area with them, so if you have any questions about that kind of stuff, feel free to shoot me a DM!

Ibn Abney · Answer

@Angela Dani I prefer the term Venture development; "describing economic development activity that is focused on using best-practices and activities of experienced business mentoring in order to help create venture and angel-capital-ready firms which have the promise to create significant economic wealth"

From my experience it is best to hold/BRRRR in these areas as they rapidly grow in value and comps aren't solid when determining a flip value. my biggest lessoned I learned was not getting started sooner!

Chicago has alot of up and coming areas west and south of the loop. Due your research and buy on fundamentals. Most of these areas i would not call "low-income" as the folks buying are above the area median income. Mostly northsiders moving west or south.

Good Luck!

Jeff Burdick · Answer

I agree with Dawn.  "Up and coming" is a much more mild way of stating it.  Typically, flipping in an up and coming neighborhood doesn't make a lot of sense.  If I own a property in an up and coming neighborhood, I'm going to ride that wave of appreciation.  Are you looking at specific Chicago neighborhoods?

Angela Dani · Answer

Forgot to mention we are in Chicago. So if anyone has particular experience in Chicago, I'm curious to hear what your biggest lesson learned was!

Found My Interest in Gentrification-Tips/Insight for Newbie?

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