Bad Location Good Property

As we already touched upon on the previous section, if you want to flip a home and try to make money within a short period of time you may have to consider buying in a location that at first doesn’t look so good but may soon changed. The process of gentrification is simply when an old, undesirable neighborhood suddenly becomes the new hot and trendy spot to live attractive young, well to do people. Very often the first signs of gentrification occur when new and renovated property start sprouting up in bad areas.  This is done to encourage people to buy in an undesirable area hoping to change the location by attracting wealthier people.

A bad location with good property means inside the home the person can enjoy the same luxuries as they would in an expensive part of town but at a much more affordable price. This usually attracts a type of clientele that can’t afford a good property in a good location. But this is the first step to converting that neighborhood. Once those people start to move in then more and more expansion occurs and the once bad area will see a development boom. Before you know it, in a very short period of time the bad area is suddenly a good area.

This leads to full gentrification and prices can become very expensive in a short period of time. As a potential home flipper your job is to try to buy just before the development boom. You may get a good deal on a property knowing that within as little as half a year the area may be completely redeveloped and the property you bought cheap may now be worth a lot more according to market value. This is how profit is made in house flipping.