How can you determine if a community is a good fit? You can walk the neighborhood and make visits at various times of the day, but what should you look for?
Here are some of those possible indicators of potential deals:
Several houses are on the market
Two or three for-sale homes in close proximity are okay, but more than that could be an indication that something is wrong. CReating an opportunity to farm the neighborhood for potential deals.
That said, a neighborhood could be seeing more “For Sale” signs because it’s rapidly gentrifying (improving) and longtime residents are finally looking to move on. Which still great since you know prices are rising already. You want to do some digging to find the true reason why.
School enrollment is falling
In healthy communities, schools often see steady enrollment. Shrinking class sizes could be a red flag. If enrollment in local schools is trending lower, it might be wise to investigate.
Nearby storefronts are empty or leaning industrial
Be mindful of any kind of commercial influence on the block, such as close gas stations or anything that could be undesirable health-wise. This could also be a good opportunity to buy a commercial property. Remember you are looking for real estate deals!
It takes experience to recognize a profitable deal. Of course, experience usually comes from making lots of mistakes… Trust me I have made my few.
Be aware of local and reginal market trends, but do not be paralyzed by these trends. The concept of real estate investing works in every market conditions., in every city, whether the market is hot or in the pits…. Actual from my experience, you get better deals and profit margins during pit times.
Good luck! and happy hunting.