Posted by Warren Priske on December 27, 2004 at 24:29:10:
I don’t know about your area, but with the way prices are in my area, it’s not uncommon to see good families moving into some of the lower-end areas. I’m able to move properties quickly in neighborhoods that seem ghetto, but are just very ugly. My rule for retailing in a high-priced market is to buy the cheapest houses possible in areas where you wouldn’t be afraid to get out of your car at night.
Questions For Rehabbers - Posted by Dhale
Posted by Dhale on December 26, 2004 at 21:04:18:
Hi guys,
Im a newbie rehabber here in chicago. My question is to the seasoned rehabbers ANYWHERE or in Illinois. Because Im using hard money for purchase and rehab, the homes that I screen have to be priced at 65% of ARV-repairs. This is fine but it seems like all the homes that “fit” the formula are in low income ghetto type of neighborhoods. Is there still money to be made in these hoods. I would not want to fix up a property and have a very hard time retailing it just because I got it cheap. What other areas are other rehabbers working in? and how can I find out? OR are these neighborhoods profitable?
Re: Questions For Rehabbers - Posted by Rob
Posted by Rob on December 27, 2004 at 15:18:27:
These areas can be profitable. I try to look for an area that is right on the verge good and so so. It only takes a few rehabbed houses on one of these blocks to strike serious interest in renters and buyers. Some historic districts are prime examples. Where I am you could have a $200,000 house next to a $25,000 house. Of course the $25,000 house needs an enormous amount of work. There are also apartments like this.