How to Identify Neighborhoods for a Flip

 

What's in a Neighborhood? What to Look for When Locating a House to Flip

Whether buying or selling real estate, location means everything. Even the most head-turning and feature-rich homes are hard to offload when neighborhoods lack safety, walkability, and the right amenities. If you're attempting to build wealth by fixing and flipping properties, it's important to know how to scout areas that are guaranteed to attract motivated and qualified buyers.

Why Location Is So Important

When fixing and flipping a home, you can change every aspect of its layout and aesthetics. With a big enough budget, you can replace old, inefficient window ACs with ductless mini-split systems, pull up threadbare flooring, and swap low-cost stock cabinets out for real wood designs. You can knock down walls to create open-concept living spaces or convert unused attics and basements into functional bedrooms.

However, no matter how ambitious your design goals may be or how high your spending limit, you cannot change a home's location. This is the one aspect of a property that's guaranteed to remain static. Informed buyers are well aware of this fact. If a neighborhood doesn't feel safe or if isn't appealing to you personally, it's unlikely to appeal to your targeted market.

Easy and Convenient Commutes

At the top of nearly every smart homebuyer's list of essentials is an easy and convenient commute. Although you're likely to find many low-priced homes on the outskirts of town, few people are eager to spend hours each day getting to and from their jobs. Whether shopping for your next investment in a dense urban area or away from the hustle and bustle of the city, look for easy freeway access, well-maintained roads, and important, commute-related amenities. With plenty of gas stations, public EV charging stations, and open, easy-to-navigate streets, even fairly remote areas can be appealing to people who've prioritized easy commuting.

Green, Open Spaces

As beautiful as the interior of a recently renovated home might be, most people don't want to spend all of their time indoors. Nearby parks, hiking trails, and other green, open spaces are fantastic selling points. They're especially attractive to families with small children and rambunctious pets in search of their first homes.

Pet-Friendly Amenities

When you find potential flips in neighborhoods with lots of green, open spaces, check for pet-friendly amenities and regulations. Dog parks, grooming centers, and nearby veterinary clinics are all a huge plus for consumers who take their canine companions everywhere they go and want convenient ways to care for them.

Good Schools at Every Level of Learning

In an increasingly tough economy, household dynamics are fast-changing. It's not enough to look for good elementary, middle, and high schools. Instead, check for local universities, community colleges, and trade schools as well. This will make it easier to attract families with adult children who are living at home while completing higher learning. With the increasing number of age-in-place seniors sharing homes with adult children, it's also a good idea to search for flips in locations with adult daycares, senior rec centers, and other resources for the elderly.

Excellent Walkability Scores

The best neighborhoods have a diverse selection of local businesses. Residents can easily walk to the store for essentials or spend their afternoons relaxing at corner cafes. You can optimize your profits in the fix-and-flip business by looking for locations that are rich with bookstores, thrift stores, boutiques, and other non-essential but widely appreciated businesses.

Fresh, High-Quality Food

Avoid making your next fix or flip purchase in a food desert. Savvy home shoppers know just how important it is to have access to quality stores that stock high-quality foods. Look for locations that offer easy access to both popular, big box stores and specialty markets. You'll have an easier time reeling qualified buyers in when they know that their favorite butcher, baker, or organic produce stand is just around the corner. With fast-rising inflation and increasing food scarcity, quality, easy-to-access goods are a strong selling point. 

A Robust Job Market

Many buyers are searching for high-return investments of their own. Rathern than selling a primary residence, you might be selling someone's future rental home. Among the best things for prospective landlords to look for is a robust job market. This way, prospective tenants have guaranteed income and a reliable way to pay their rent. Look for low employment rates, desirable employers, and multiple options in commute transportation.

Red Flags to Watch Out For

There are also a few important red flags to watch for. In addition to the absence of a strong job market, good schools, green spaces, and convenient commute routes, be wary of:

• High crime rates
• Numerous houses for sale
• Failing businesses
• Cookie-cutter developments
• Insufficient street parking

Nothing makes a poor first impression on would-be buyers like a home that's surrounded by foreclosures but still has no off-street parking. The abandoned cars, ill-maintained sidewalks, and unkempt lawns of neighboring properties can drive your efforts to sell a fix-and-flip home to a grinding halt.