You’ve found a foreclosure within your price range that looks like a great investment at first glance. However, the number of bedrooms or the kitchen size are just a few of the things you need to look at when doing your due diligence. Aside from some of the bigger items like a title search and possible repairs needed, the following four areas should not be overlooked.
1. What amenities does the neighborhood offer?
Keep in mind that you’re investing in the neighborhood too, not just the property. If the community has access to tennis courts or a neighborhood pool, these will prove beneficial for both the owner occupant as well as the investor looking to flip the house. If you live in the property, you’ll enjoy these amenities whenever you’d like and can view them as a nice add-on. On the other hand, investors can boast about these amenities , helping to increase its marketability. Before submitting your bid, research the neighborhood to uncover any extras worth bragging about.
2. Nearby shops & businesses
Tour the area and be on the lookout for any nearby businesses that’ll increase the property’s livability and flipability. After all, people love the added convenience of having grocery stores, gyms and cafes within walking distance. These types of businesses help provide much-needed entertainment and help foster a sense of community for residents. These can also improve property values for real estate investors. If you’re looking to flip the house, here are some of the places you may want to include in your property description:
- Grocery stores
- Cafes
- Shops
- Malls
- Dog parks
- Movie theaters
- Gyms
If you’re looking to live in the property yourself, consider other types of businesses that cater to your lifestyle. Foodies may prefer nearby food options while fitness addicts should be on the lookout for any gyms, parks or trails.
3. School system reputation
Having your property located in a good school district can significantly benefit its marketability. In fact, a report found that property values increase by $20 for every dollar spent on school systems. So if an area has a highly rated school system, this could mean it’s overall a good place to live and will likely be a lucrative investment for flippers.
For a proper assessment of the area’s schools, pay close attention to the “School Information” section found within every property detail page on Hubzu. This section offers ratings on all nearby schools.
4. Accessibility of the location
Many people are willing to pay top dollar for a home that cuts down on commuting times, and for good reason. Long commute times have been linked to adverse effect on people’s health. It can make people more stressed, irritable and cuts down on the time they get to spend with their family and friends. It also forces them to spend more on their vehicle’s maintenance and gas each month, which adds up over time. For better insight into the property’s accessibility, try typing the address or city name into this database to see the area’s commute report and its walkability score.
Buying a foreclosure home is an exciting opportunity for both real estate investors and people looking for a new home. Foreclosures could possibly save you some money and get you into neighborhoods that you wouldn’t be able to otherwise. By keeping these four areas in mind, you can help guarantee that the area you’re buying into is worth the time and investment.
