Buying in up and coming areas?
A lot of times, you will find areas that are run down and filled with drugs, crime, and low-quality living around city areas. Occasionally, these places will begin to gain investments that not only bring the area's value up, but the prices of rent, homes, and the like raise. Buying a home in one of these areas early on can be a huge profit for you in the future if you catch them at the right time. I have gotten a few homes in these types of areas for under $35,000 and they were considered livable. I did a bit of renovating and updating and within 2 years, they were on the market and sold for over $150,000.
5 answers
I never thought to do this but it makes sense that it would work. I think you really need to be aware of your city areas and know the business as well as plans for renovations as well as economy increases.
It’s natural to want to be in an area in close proximity to popular dining, shopping and entertainment options. Even if you’re buying the home to flip it, you want to own property in a desirable area. “When you buy in the best part of town, you are paying top dollar for the property,” according to Oliver Somoza, CEO of Philadelphia-based Turnkey Property Pro. But when you invest in a less popular neighborhood, your buying power can go much farther.
“Whereas $300,000 might get you a studio apartment in the city center, it could buy you not one but two 3-bedroom houses in a growing neighborhood not too much farther away,” he says.
You really gotta know the ins and outs for this and I just don't have that kind of pull anywhere but it is amazing when people pull it off. An area close to where I am that is run down and very ghetto is undergoing a face lift and a lot of investors put money into it. I know the rent and everything else is going to shoot up in the area because of it.
berniece_brekke: You really gotta know the ins and outs for this and I just don't have that kind of pull anywhere but it is amazing when people pull it off. An area close to where I am that is run down and very ghetto is undergoing a face lift and a lot of investors put money into it. I know the rent and everything else is going to shoot up in the area because of it.
@berniece_brekke I find it easier to keep in touch with people who live in these areas. There are facebook groups for everything these days so you can just join them and follow them to see what folks are saying.