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I often get the question, "What do I look for in a neighborhood?"
My answer is always the same. "Easy. Value!"
I usually get a strange look, but it's true. In a neighborhood, I am looking for clues to assess the value of the property, plain and simple.
Well, maybe not so plain and simple, I know. So let me explain.
Normally, my rehab properties are not in the expensive areas of town. It's rare that you'll find a rehabber meeting his or her investment goals buying in the expensive parts of town. There are generally fewer homes needing rehabbing and the fixer-uppers that are there are going for top dollar. It's safe to say the bulk of the investor activity is taking place in the mid-to-low range of home prices.
That's not to say I wouldn't look in, or buy in, the swank neighborhoods. Occasionally there are bargains to be scooped up there, but not with enough regularity to focus on.
But, there are some places I definitely WON'T invest in.
I won't TOUCH the urban war zone. Let me describe what I mean.
"You don't go there because it's common knowledge that you shouldn't. If you happen to wander in that area, you are given suspicious looks by all the folks walking the streets and sitting outside their houses. Your car definitely doesn't belong there! It seems nobody takes any pride in their dwelling, and trash seems to be a normal part of the décor."
Do you know of places like that? If you are living in a town of any size, you probably know of a neighborhood that fits the above description.
Watch out for is neighborhoods in serious decline. If the area looks like it
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