Lender · Tampa, FL · Member since 2013 · 228 posts · 95 votes
Where would I look for solid information on which neighborhoods would be more favorable for rehabs? What factors would I want to look into that would indicate an enviroment healthy for buying, rehabbing, and selling? I'm in Pinellas County Florida if anyone has any specific info.
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
12y
In many larger cities across the country there are community development organizations that have formed to bring investment and turn marginal areas around. These transitional areas are often a good bet as even when economic pressures can stall a market overall, cities and communities are invested in the health of these transitional areas. As contractors, developers, and businesses become invested in these markets they become more stable. Getting in at the right time can allow investors to capitalize on years of steady growth.
Getting involved with these organizations is also a good opportunity to network with forward thinking realtors and contractors who have their fingers on the pulse of that particular market.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y
The obvious answer is look where there is a high volume of sales. Any agent can get that info for you. Another strategy is look for areas where there is a high percentage of cash sales. This generally means sales to investors. If other investors are working the area, that may mean it is a good reahab area.
However I am a contrarian. Following the crowd of other investors is no guarantee they know what they are doing. Furthermore if an area has high sales and is very popular getting a good deal may be harder.
Which leads me to my philosophy, Where you buy isn't as important as the deal you get. Buying dirt cheap in an average neighborhood is better than paying top dollar in a great neighborhood. Good luck - Ned
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
12y
In many larger cities across the country there are community development organizations that have formed to bring investment and turn marginal areas around. These transitional areas are often a good bet as even when economic pressures can stall a market overall, cities and communities are invested in the health of these transitional areas. As contractors, developers, and businesses become invested in these markets they become more stable. Getting in at the right time can allow investors to capitalize on years of steady growth.
Getting involved with these organizations is also a good opportunity to network with forward thinking realtors and contractors who have their fingers on the pulse of that particular market.
Lender · Tampa, FL · Member since 2013 · 228 posts · 95 votes
12y
@Ned Carey I agree, finding the right deal is definitely the most important factor.
@Randy F. Awesome advice. Do you know the names of any just so I can check them out and see what they look like and then look for something like that in my area?
Here in Anchorage they have been working in cleaning up one of the worst areas of town. Here is an article to give you an idea of what can be looked for to zero in on where one might piggy back on the efforts of cities, and communities within them:
Other good signs to look for include areas where they are building schools, churches, developing parks, beautification projects, and infrastructure projects.
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
12y
Here is an example of what I'm talking about...
We recently identified an area in a marginal section of a large city where a new church was built. Shortly after church was built, several town homes were built half a block away. Over the years condemned houses were torn down leaving vacant lots, but the existing homes are in decent condition and the area is relatively clean. Interspersed on and around this several blocks are four boarded up properties that at first blush appear to have potential. In this area conditions change from block to block, as it is on the fringes of the war zone, however it is also on the fringes of an area that has seen a great deal of investment and gentrification over the past 15-20 years. This area isnt ripe yet for rehab/flip, but looking at it for cash flowing long term holds, or possibly selling them as such. Next step is to check status and ownership of boarded up properties, look at comps and rental rates in the area, drive the area at night to see what kind of activity is going on and walk it during the day and strike up conversations with residents about the area.
If one doesn't wish to run with the pack and fight the competition, there's much more to it than just running numbers and putting in offers. But, how gratifying to give an area the kick it needs to begin raising property values and increasing the quality of life for the areas residents. And there is also something to be said for having other investors chasing your coat tails rather than the other way around!