Houses not to Buy
We thought we would put together a list that we ourselves and other experienced flippers warn to stay away from. What better way to save time and money than to learn from someone else’s mistakes!
Backs up to apartment buildings-For one, being located next to an apartment building complex will bring your property value down. Rehabbing's main point is to bring up the value of the property. Also you could potentially deal with noise, traffic and the caliber of renters the complex caters to (college students, low income, or young business professionals).
Secluded or too rural-It takes a certain buyer to want to live in an extremely rural or secluded area. Don’t pick a house that its nearest neighbor is a mile away. Convenience is a huge selling point will make the to seell if it is near grocery stores, interstates etc.
Bad school district–If you have ever looked at an MLS listing then you know that there is a space for school district. Reason for this? People that have kids want their kids in a good school plain and simple. Make ssure to ask around, ask the neighbors or look up the school ratings. It could save you a potentially botched deal on a flip.
Near Train Tracks- Loud train whistle at 2 a.m. Enough said.
Mixed use or commercial use- First problem is many people don’t realize that they will need a commercial loan to buy a mixed use property. Read more here: http://www.biggerpockets.com/renewsblog/2008/10/02/investing-in-mixed-use-commercial-property/
Bad lot- It is not to say that you should NEVER buy a house with a bad lot, but it will definitely make it harder to sell. Our team recently sold a property with a severely sloping back yard. We had to cut into the hill, add a retaining wall, and level the area at the end of the driveway to make it more usable. Problem solved in this situation but you will want to assess the cost vs. the return on an issue like this.
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