There’s a lot of money to be made with the fix-n-flip that’s for certain. A big part of how much money can be made depends a lot on location. That’s right: location, location, location! If you’re not flipping in the right neighborhoods, you could be missing out on a lot of money. Or, worse, losing money.
Since I started investing in real estate years, I’ve learned a few things. One of them being how to tell the difference between a good neighborhood to flip-n-flip houses in and a not so good neighborhood. Today’s training video is going to address those differences so you can use it to start making more money, in less time–the safe way.
Avoid Fix And Flips In War Zones
It should go without saying, but when you buy a property in a war zone your taking some big risks. Not only do these properties typically yield lower profits for the same amount of work, they can also be difficult to sell.
On top of that, you’re taking the chance of having your tools and equipment stolen if you’re rehabbing houses in war zone areas. It’s happened to me before and it can really eat into your profit and delay your progress. But the biggest concern is the After Repair Value, or ARV. That’s why I never do a rehab project here in Philly if the after repair value is a dime less than 150 grand.
Is The Neighborhood Full Of Rentals?
Another indicator a neighborhood may not be a great choice is when it’s chock full of rental units. It can be difficult to make a good profit in rental areas because the people looking in those neighborhoods are renters. They are not typically someone interested in purchasing a home.
Another thing to take into consideration is the amount of work and, more specifically, the cost of that work. Doing a lot of work isn’t necessarily a bad thing, but is it going to pay off? Take a look at the video for more…
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To YOUR Success,