Purchasing The Best House In The Neighborhood Is Not A Good Investment Strategy


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When looking for investment property it is best to shy away from purchasing the best house in the neighborhood because the owners are usually going to want the highest price in the neighborhood.  The only time to consider purchasing the best house in the neighborhood is if the owners are desperate to sell their property and are willing to sell it at a bargain.

While this is rarely the case, purchasing the best house in the neighborhood is likely to cost way too much to make it profitable to an investor.  On the contrary, purchasing the worst house in the neighborhood is generally a decent strategy, assuming that it is not in terrible shape.  Rehab investors can benefit the most from this, as they can bring a house back up to the neighborhood standard.

This is likely to raise its property value considerably, but purchasing the best house in the neighborhood leaves very little room for profit.  Those who look to improve this house won’t raise the value, as it is out of place with the rest of the neighborhood.

When determining the best house to purchase, look at the comps in the area and find one that can be purchased for under market value.  The best way to do this, is to market directly to these potential sellers.  Most of the properties that are listed are usually priced competitively so searching the MLS for an investment property is generally not a good idea.

In order to find these sellers there are many different techniques that an investor can use.  They can market by word of mouth, put an advertisement on the Internet or place flyers around the area.  The idea is to have sellers directly contact an investor with a burning desire to sell their property.  This type of advertising really focuses on desperate sellers who are willing to sacrifice on price in order to sell quickly.

After finding a property that requires a little rehab work, don’t put in the money to make it the best house in the neighborhood.  This is unlikely to earn a positive ROI on an investment.  When performing a rehab, only do what is necessary to flip the property quickly or make it habitable for rental tenants.

Forget about purchasing the best house in the neighborhood, as there is little incentive to do so.  Consider purchasing a house that requires a little rehab work and can be purchased for under market value.  This is the ticket to earning money through real estate investing.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

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