Can you imagine this scenario?
You buy a fixer upper in an established, solidly middle-class neighborhood and get to work making the necessary repairs. You finish the project on budget AND on schedule and list it at an ARV that is sure to generate a healthy profit. All is well, right? Wrong.
What if it turns out that the leafy, bucolic neighborhood was actually built on a landfill and is leaching toxic chemicals? Or what if the county has decided that the neighborhood is the perfect place to build a new highway? Or maybe the local plant is closing, throwing people out of work and, subsequently, out of the housing market?
Before you invest your time and hard earned money into a project, it pays to do a little digging first.
Do A Deep Dive
By checking any of the big real estate websites like Zillow, Redfin and Trulia, you can discover basic information about the neighborhood like its walkability, bikeability, and accessibility to public transit. Most of these sites also provide data about the local public schools—a big selling point for families.
Check Crime Statistics
Crime happens. But most homebuyers would prefer that it not happen in their backyard. So, it pays to do a deep dive into the crime statistics in the area. Luckily, in the age of the internet, this is fairly easy to do. There are several free sites including the Community Crime Map by Lexis Nexis and City-Data which allow you to search by zip code. Paid sites like Neighborhood Scout compile the information into tidy reports for you and can be worth the money if time is short.
Research Regional Developments
Be aware of any major developments planned for the area surrounding your potential project. Some may have a positive impact on housing demand while the impact of others may be distinctly negative. Perhaps there is a plant closing or potential layoffs that will affect employment in the area. Or maybe there is a major thoroughfare in the offing that will positively or negatively impact traffic patterns. Pay a visit to your local Chamber of Commerce or Planning and Zoning office to learn more about future developments.
When it comes to real estate investing, it pays to be informed. It also pays to line up financing that is customized to your project. Let Navigator Private Capital design a loan package that works for you. Call us at 443.603.0193 or email us at firstname.lastname@example.org for details.