Comparing ZipCodes to Invest In

[Frankie Torres]

Hey BP,

I just got pre-approved for a HML, just have to cover closing costs and the rest of the purchase price; looking to do a flip, not under contract. I am currently comparing 2 different zipcodes to invest in. Zipcode A has a much higher crime rate, but ZipCode B has lower rents, lower population growth, higher annual residential turnover, and lower crime rate- slightly above the national average. In a recent post I made about "RedFlags and Tell Tale signs", I posted 3 pictures of the immediate area of a property in foreclosure (Zipcode A).. If I only intend to hold the property for less than 120 days, is it worth the trouble buying in a higher crime rate area?..My exit strategy if I can not sell, is to put the property up for a 1-2 year lease option at around $1060/ month with the first & last month's rent, and security deposit to go toward the principle. Any help or constructive criticism would be appreciated =]

ZipCode A: 

Median Income: $37,874

--Fair Market Rents--

Studio	$657
One Bedroom	$750
Two Bedroom	$933
Three Bedroom	$1,234
Four Bedroom	$1,480

Crime Index:

ZipCode A = 2.9

Zipcode B = 1.23

Market Action Index:

Zipcode A = Slight seller's advantage

Zipcode B = Strong seller's market