Are the location of schools important in a fix & flip location?

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
2y
Quote from @Bob S.:
Quote from @Jay Hinrichs:
Quote from @Bob S.:
Quote from @Shai Simchon:

how much importance are the schools in fix % flip strategy?


 Its not, Its ALL about price, think about it :) 


Respectfully disagree if your doing fix and flip to resell to homeowners its critical for rental purposes other than low End section 8 its also important.. renters want good schools also.. buyers its paramount..  I mean just look at where you personally live.. top ranked schools have the highest priced real estate 97.3 % of the time.

 However, if you are all in 150k, and sell for 200k, well, not so bad. If all in 400k and sell for 500k that's great also. IMO too many focus on location to much, sure you do not want to be next to a crack house, but price is key.


I dont know Bob  one of the golden rules in real estate is location location location.
Other wise every  one would be buying in Geary indiana :)
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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    2y
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     It impacts the outprice and comes down to your market data searching out areas to flip. For example, the most important thing to digest is if the location is good, this is for exit strategies at the end of the day. This is for sales and if you need to hold for awhile due to a market change in pricing.

    I did a flip in an area that was a secondary market, and basically lost a couple thousand on the flip not following this rule of thumb.. The next person that listed their model match in the same area right after we sold, sold for 160k less than us (if that was us we would have lost all our equity and would have had to short sale it). Just do your due diligence on your area prior to buying.  

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Its not, Its ALL about price, think about it :) 

    2Reply
  • Shai Simchon
    OP
    Member since 2023 · 10 posts · 2 votes
    2y

    Hey Peter, thanks for the replay! 

    what do you mean in exit strategy? if the location isn't the best it will be harder to sell? or is it never mind while the numbers are good?

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Shai Simchon:

    Hey Peter, thanks for the replay! 

    what do you mean in exit strategy? if the location isn't the best it will be harder to sell? or is it never mind while the numbers are good?


     ITS ALL about price. Just because you would not live there does not mean others are/ will not PRICE PRICE PRICE .

    1Reply
  • Shai Simchon
    OP
    Member since 2023 · 10 posts · 2 votes
    2y
    Quote from @Bob S.:
    Quote from @Shai Simchon:

    Hey Peter, thanks for the replay! 

    what do you mean in exit strategy? if the location isn't the best it will be harder to sell? or is it never mind while the numbers are good?


     ITS ALL about price. Just because you would not live there does not mean others are/ will not PRICE PRICE PRICE .


     Thanks Bob!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Bob S.:
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Its not, Its ALL about price, think about it :) 


    Respectfully disagree if your doing fix and flip to resell to homeowners its critical for rental purposes other than low End section 8 its also important.. renters want good schools also.. buyers its paramount..  I mean just look at where you personally live.. top ranked schools have the highest priced real estate 97.3 % of the time.
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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Bob S.:
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Its not, Its ALL about price, think about it :) 


    Respectfully disagree if your doing fix and flip to resell to homeowners its critical for rental purposes other than low End section 8 its also important.. renters want good schools also.. buyers its paramount..  I mean just look at where you personally live.. top ranked schools have the highest priced real estate 97.3 % of the time.

     However, if you are all in 150k, and sell for 200k, well, not so bad. If all in 400k and sell for 500k that's great also. IMO too many focus on location to much, sure you do not want to be next to a crack house, but price is key.

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Bob S.:
    Quote from @Jay Hinrichs:
    Quote from @Bob S.:
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Its not, Its ALL about price, think about it :) 


    Respectfully disagree if your doing fix and flip to resell to homeowners its critical for rental purposes other than low End section 8 its also important.. renters want good schools also.. buyers its paramount..  I mean just look at where you personally live.. top ranked schools have the highest priced real estate 97.3 % of the time.

     However, if you are all in 150k, and sell for 200k, well, not so bad. If all in 400k and sell for 500k that's great also. IMO too many focus on location to much, sure you do not want to be next to a crack house, but price is key.


    I dont know Bob  one of the golden rules in real estate is location location location.
    Other wise every  one would be buying in Geary indiana :)
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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Bob S.:
    Quote from @Jay Hinrichs:
    Quote from @Bob S.:
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Its not, Its ALL about price, think about it :) 


    Respectfully disagree if your doing fix and flip to resell to homeowners its critical for rental purposes other than low End section 8 its also important.. renters want good schools also.. buyers its paramount..  I mean just look at where you personally live.. top ranked schools have the highest priced real estate 97.3 % of the time.

     However, if you are all in 150k, and sell for 200k, well, not so bad. If all in 400k and sell for 500k that's great also. IMO too many focus on location to much, sure you do not want to be next to a crack house, but price is key.


    I dont know Bob  one of the golden rules in real estate is location location location.
    Other wise every  one would be buying in Geary indiana :)

     I know everyone has been saying that for 50 years. IMO its about price price price with an * People live and buy everywhere. 

    0Reply
  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    2y
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?

    Good schools increase demand for an area. Increased demand increases prices. Even if you don’t have children and market to those who don’t have children, good schools are a selling point.
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    2y
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Generally the nicer school areas will have the higher prices. Higher prices leads to larger spreads.

    1Reply
  • Alan F.
    Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    In business it's all about margins × volume. The sweet spot is high margins × high volume. School districts matter...alot. to the extent that two houses located close to one another but in different districts can have different outcomes. Location, location and location, REI is all about the product. Especially nowadays, we're back to normal investing.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @James Wise:
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Generally the nicer school areas will have the higher prices. Higher prices leads to larger spread dont know about Cleveland schools.. but I can tell you on the West coast its HUGE monetary differences .  take Oakland and Oakland Schools  Piedmont Borders Oakland if you cross one street into Piedmont with Piedmont schools the values literally DOUBLE for the exact same house.   Where I was raised in Cupertino  same thing.. values compared to San Jose can be double or more..  Or when I lived in Palo Alto same thing  East palo alto schools and values were 1/3  all in the same area and same size homes.  Again I

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  • Alan F.
    Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @James Wise:
    Quote from @Shai Simchon:

    how much importance are the schools in fix % flip strategy?


     Generally the nicer school areas will have the higher prices. Higher prices leads to larger spread dont know about Cleveland schools.. but I can tell you on the West coast its HUGE monetary differences .  take Oakland and Oakland Schools  Piedmont Borders Oakland if you cross one street into Piedmont with Piedmont schools the values literally DOUBLE for the exact same house.   Where I was raised in Cupertino  same thing.. values compared to San Jose can be double or more..  Or when I lived in Palo Alto same thing  East palo alto schools and values were 1/3  all in the same area and same size homes.  Again I


     6 digit differences sometimes.

    1Reply
  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    IMO It's only important to consider school districts when you run the numbers on a deal because if your comps are in a different school district, that might affect your ARV. Maybe in your school district, houses are selling for more because of a better school, or vice versa.

    0Reply
  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    2y

    @Shai Simchon, and I split the difference here: it matters, like many said, but it is also reflected in your ARV, typically.

    So, if you have to spend the same amount to buy and rehab a house, and the only option is better school or worse school, I would pick the better school every time, because the ARV is very likely to be better in the better school district, most of the time.

    Given that it is reflected in the price most of the time, and therefore to buy a property in a lower school district will cost less on the front end, often require a lower level renovation: it all comes down to the numbers and which is going to yield the largest return for the least effort/headache.

    1Reply
  • Drago Stanimirovic
    New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 457 votes
    2y

    Hey Shai,

    When it comes to the fix-and-flip strategy, schools might not seem like a top priority, but they can actually play a bigger role than you’d think! Here's why:

    1. Resale Value Boost: Even if your buyers don’t have kids, properties near good schools tend to attract more buyers overall. People see those areas as stable and family-friendly, which can push up the value.
    2. Wider Buyer Pool: If you're targeting families, schools are huge. Families will often pay a premium for homes in a good school district, meaning a higher resale price for your flip. Plus, houses near good schools tend to move faster on the market because demand is higher.
    3. Neighborhood Appeal: Good schools usually mean better neighborhoods, less crime, and more community involvement, all of which help raise the perceived value of the area. Even non-family buyers consider this when they think about long-term property value.
    4. Long-Term Marketability: Even if your target buyer for the flip isn’t directly interested in schools, future buyers might be. Good school districts make for better long-term investments, so it’s something to keep in mind when choosing a property.

    So while schools might not be your number one factor when flipping, they can definitely help increase the speed of sale and final profit. It’s worth checking out!

    Best,
    Drago

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y

    So let me get some feedback. If you're all in 150k and sell for 200k, great % right? So, if all in 500k and sell for 600k, still good profit right, much more risk IMO. So, who cares about the school? Just because you and I will not live there, others do. So, I'm all about Price price price, to a degree.

    All the best to everyone 

    1Reply
  • Brandon Polcawich
    Member since 2024 · 11 posts · 3 votes
    2y

    @Shai Simchon which areas are you considering in the Pittsburgh area?

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    2y
    Quote from @Bob S.:

    So let me get some feedback. If you're all in 150k and sell for 200k, great % right? So, if all in 500k and sell for 600k, still good profit right, much more risk IMO. So, who cares about the school? Just because you and I will not live there, others do. So, I'm all about Price price price, to a degree.

    All the best to everyone 

    You appear to be bent on proving most wrong here. Sure it is about price, price price. What you pay for it, how much you spend on it and how much you get for it. But you appear to miss the fact that the third price in that formula is affected by location which includes school ratings. I have flipped a lot of homes and have had higher returns consistently when the location was better, particularly when the location is inside a specific highly rated school. Young families pay close attention to schools when deciding on a home purchase. That is a fact.

    So to answer the OG poster's question, schools (and all around location) should play a roll in your decision of purchase and how much to pay for it. One house to another, with all else being equal, the rehab could be exactly the same and the purchase price as well as the exit value could be largely impacted by location/school ratings of that location.
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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Will Barnard:
    Quote from @Bob S.:

    So let me get some feedback. If you're all in 150k and sell for 200k, great % right? So, if all in 500k and sell for 600k, still good profit right, much more risk IMO. So, who cares about the school? Just because you and I will not live there, others do. So, I'm all about Price price price, to a degree.

    All the best to everyone 

    You appear to be bent on proving most wrong here. Sure it is about price, price price. What you pay for it, how much you spend on it and how much you get for it. But you appear to miss the fact that the third price in that formula is affected by location which includes school ratings. I have flipped a lot of homes and have had higher returns consistently when the location was better, particularly when the location is inside a specific highly rated school. Young families pay close attention to schools when deciding on a home purchase. That is a fact.

    So to answer the OG poster's question, schools (and all around location) should play a roll in your decision of purchase and how much to pay for it. One house to another, with all else being equal, the rehab could be exactly the same and the purchase price as well as the exit value could be largely impacted by location/school ratings of that location.
    100%, IMO to many focus on schools, how close to the city, crime ect. YES to a degree I agree. HOWEVER, money can be made anywhere. Many invest with emotion, not facts. There is a saying, " you really can't get hurt jumping out a basement window" :)
     

     I would rather be all in 250k or less (EVERYONE can afford that) vs 500- 750k, much more " risk" especially in today's market. No right or wrong answer IF you buy correctly. Like the saying, "you make your money when you buy "

    Keep crushing it, all the best to you 

    0Reply
  • Alan F.
    Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    2y
    Quote from @Will Barnard:
    Quote from @Bob S.:

    So let me get some feedback. If you're all in 150k and sell for 200k, great % right? So, if all in 500k and sell for 600k, still good profit right, much more risk IMO. So, who cares about the school? Just because you and I will not live there, others do. So, I'm all about Price price price, to a degree.

    All the best to everyone 

    You appear to be bent on proving most wrong here. Sure it is about price, price price. What you pay for it, how much you spend on it and how much you get for it. But you appear to miss the fact that the third price in that formula is affected by location which includes school ratings. I have flipped a lot of homes and have had higher returns consistently when the location was better, particularly when the location is inside a specific highly rated school. Young families pay close attention to schools when deciding on a home purchase. That is a fact.

    So to answer the OG poster's question, schools (and all around location) should play a roll in your decision of purchase and how much to pay for it. One house to another, with all else being equal, the rehab could be exactly the same and the purchase price as well as the exit value could be largely impacted by location/school ratings of that location.

     Lower DOM  too  :)

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    2y

    @Bob S. Agreed, I too would much rather be all in at $250k, unfortunately here in Southern CA, that won't buy you a garage! $1,250,000 all in is often difficult these days!

    Very true, you make your money when you buy and that formula is dependent upon your search abilities, how big of a net you cast to find opportunities, your negotiating skills, your ability to identify great locations (often near good schools), and your ability to transform the property. All these skill sets are important and necessary for successful flipping projects.

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    2y
    Quote from @Shai Simchon:

    Hey Peter, thanks for the replay! 

    what do you mean in exit strategy? if the location isn't the best it will be harder to sell? or is it never mind while the numbers are good?


    The exit strategy is when you buy a property for a short term gain and if the market changes.. How will you sell it? Will you sell, will you keep it as a LTR, STR or MTR. Run all those numbers, and then if you are keeping it as a LTR how do the numbers look for that property?

    If area is a D+ area harder to sell, if it is a A+ area very easy to sell. You will know this by looking at Active properties in the market, and Days on Market (DOM).

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  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 821 posts · 255 votes
    2y

    If you're trying to attract a family with kids, sure it generally is a top priority. I know, that seems like kind of a basic answer but it also depends on what area you are considering. Would like to know more. 

    0Reply
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