Five Northridge Rehab Property Traits You Need to Know
A Northridge rehab property offers plenty of great investment opportunities, but it can just as easily be a money trap if you’re not careful. If you’re looking to get into buying and selling Northridge rehab properties, here are five traits you need to know.
Location Always Matters
You could have the best Northridge rehab property in the world, and it wouldn’t matter unless that property is in a good location. Location means everything to buyers, and if you’re property is in a rough neighborhood or far out of the way, then you’re going to have a hard time convincing buyers it is the right property for them.
When looking at properties, always consider the location. What’s nearby? Is the home in a good school district? What’s the crime rate? Are there great shops and restaurants nearby? How close is public transportation? Think about these factors as you choose a Northridge rehab property.
Check Your Market Specifics
Homes in different zip codes can change drastically. You need to be looking out for neighborhoods that are seeing a lot of good action. Avoid places with high crime or high unemployment. Few people want to buy in these areas, and the upgrades you make will not show themselves in the price when you sell again.
Don’t look at just the home. Look at the homes surrounding it. Take the time to drive the area you want to buy and get a feel for what’s around there. You might notice other factors that make a difference, such as busy highways or train tracks that run near the backyard.
Make sure you’re looking at comps frequently. If you make massive upgrades to a $150,000 house in an equally priced neighborhood, then you might not see a return on investment. Look for good upgrades fit for the neighborhood.
Think of the Demand
One problem investors run into is making upgrades that they themselves would want in a house. You aren’t looking to please yourself with these properties; you want to create value and demand in your properties.
Going for the more unique properties limits the types of buyers you have. Not everyone wants to live in a tiny house, and not every home needs a pool. Look for good upgrades that please the most people. If the floor plan is bad, look for ways to knock out walls and make it better. Fix up the backyard so it looks presentable. There will always be some changes you can’t do, but if you focus on creating value in your upgrades, then you’ll avoid sinking too much into a property.
Keep Profit in Mind
To get a good Northridge house, you basically need three things: a good buying price that doesn’t wipe out your savings, minimal upgrade and repair costs and a great resale price. If you don’t think a property will deliver on all three of these numbers, move on. You’ll end up losing more money and spending time on a house that won’t pay off.
Keep Time in Mind
Your timeframe is almost as important as the price itself. If your repairs take months at a time, then you’re going to be out of money for quite some time.
When you look at Northridge properties, keep the time constraint in the back on your mind. You need to think about the whether the time spent will justify the price spent. They say that time is money, and when it comes to real estate, that’s certainly true.
Keep these five Northridge rehab property traits in mind as you start looking for properties. If you do, you’ll have more success in finding great properties to flip and resell.