Posted by Rob FL on May 09, 1999 at 20:48:20:
Actually, most of the properties I target are in what Carlton Sheets calls “bread and butter” neighborhoods. I target good but older neighborhoods because in the newer neighborhoods nobody has any equity because they are mortgaged up to the hilt. Deals can be found, but most of the time I have found that the deals are in the neighborhoods that are 20 to 40 years old because the houses have some equity, have appreciated since the original purchase, and may need repairs.
Actually, the age of property is a factor, but appreciation is not affected by only one factor. Does a 100 year old house that has been remodeled and updated to 1999 standards and in a great location have no appreciation? In Orlando, most of the older houses are right downtown. In 10 years, the prices have literally doubled. I have one house down there and the rents have gone from $450 to $700 in 5 years. The neighborhood was subdivided in 1915, pretty old. There are other areas of my town that are the same age and the property is depreciating in value.
One thing I have learned is never to make broad generalizations. Do your homework. Before I go for a deal, I know the numbers.
How low can you go? - Posted by Leon B.
Posted by Leon B. on May 07, 1999 at 01:09:30:
When looking for property to flip or fix I see alot of properties in areas that I would not personally choose to reside in given the choice. How do you in your business determine that a NEIGHBORHOOD meets your criteria for investing? I believe there’s a fine line between investment grade neighborhoods and one that you just have to pass on. Where do you draw the line or in other words, how low can you go? Thank-you in advance.
Leon
Re: How low can you go? - Posted by Rob FL
Posted by Rob FL on May 07, 1999 at 16:05:03:
Probably 80% of the properties I deal with are in areas that I would not care to live in. My line is basically, would I walk the streets there after dark. If the answer is no, then I am generally not interested in the property.
Re: How low can you go? - Posted by Carolyn
Posted by Carolyn on May 09, 1999 at 12:11:01:
If you are buying in neighborhoods like the one you describe, how does that match up with the “ugly houses in pretty neighborhoods” statement? I would think that the houses your mentioning are in areas that are very old and the appreciation value of the properties has slowed down consiserably, to even a near halt… is this right? Please try to address both of my questions. Also, if you would, please elaborate where you can. I enjoy learning from everyone. Thanks, Carolyn