![]() ![]() Step 2: Calculate Your Maximum Purchase Price Choose target neighborhoods that are near your home, work, or between the two. ![]() You don’t want to spend hours driving to and from your target neighborhoods to check for new houses to flip or meet with contractors on houses you are flipping. If you feel safe, potential buyers will as well. SafetyĬhoose a neighborhood where you feel safe. Proximity to universities and major business centers are other signs of a great neighborhood. Good public transport, easy commutes to larger cities, and low crime are all hallmarks of a great neighborhood. Look for family-friendly neighborhoods with good schools, shopping, parks, recreational facilities, and plenty of retail and office space. Charm and Desirability of the NeighborhoodĪ great neighborhood for house flipping is an up and coming neighborhood that has charm and good amenities. You’ll be able to maximize your profit in minimal time. Look for a home that is 20 to 30 years old that requires mostly cosmetic modernization and can be done in three to four weeks maximum. A 5 to 10-year-old home likely doesn’t require enough upgrades to buy under market value. A 100-year old home that needs a new roof and new plumbing will be too expensive and time-consuming to quickly flip. Ages of HomesĪgain, you are looking for the middle ground. Mid-priced houses will offer the best balance of risk and return. You get a lower return than high-end house flips, but you avoid the burden and risk of high-end improvement costs. You get a higher return than with low-end house flips, without the increased risk of profit loss. House flipping in the median price range offers the best balance between risk and return. This price range has the largest number of potential buyers. You should look for a neighborhood in the median price range. ![]() You will also want to locate a neighborhood that offers distinct price points, so you can buy at the lower price point and sell at the higher price point. In sales activity, you are not only looking for quick sales. A neighborhood where renovated homes are sitting on the market for months will not be a good target neighborhood. Most homes finished to a similar standard should be selling within a few weeks. If you aim to flip a house in three to four weeks, you want a sales market that is moving. You are looking for a neighborhood that has homes selling quickly. To select the ideal target neighborhood, it should meet six key criteria: By researching ahead of time, you have the target clearly set to maximize return. As the saying goes, it’s all about “location, location, location.” You want to narrow your search to the neighborhoods that have the greatest house-flipping potential. ![]()
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