FIND THE RIGHT LOCATION & Most Desirable House
Some fixer-uppers are going to be a lot more lucrative for an investor than others and to find them you will want to start with location. I say location, location location that holds tried and true! Looking at some that seem like great potential at the end of the day are not the best investment.
A fixer-upper that’s surrounded by a bunch of houses that also need a lot of work isn’t going to flip for as much as one that’s surrounded by luxury high end homes.
Even though you probably won’t find too many fixer uppers surrounded by luxury homes although there have been more coming on the market in this area. There are plenty in up-and-coming neighborhoods that are just as potentially viable.
Talk to an expert in the area (like a real estate agent) about where to find a house that needs some TLC but could yield a great return for you, and then start targeting homes in your price range in that spot. That’s the best way to narrow your search in a manner that doesn’t restrict you too much and gives you the highest chance of finding an excellent deal.
The most popular type of residential property in the area is going to vary depending on where you are. In some suburbs, it’ll be a three-bedroom house with a yard, while in other downtown artist lofts, there will be a lot more demand for studio condos with room to create. A hot spot for retirees might favor one story homes with just two bedrooms, and maybe graduate students in the nearby college town are most interested in small, easy-to-manage units within walking distance of campus. So many possibilities, what's your niche.
Wherever you find that fixer-upper, make sure you understand what the most popular homes in its neighborhood look like. If the fixer-upper doesn’t resemble that profile, and it would cost a lot of money to get it to conform.........then you should probably pass and move on to the next opportunity.