How Flipping Houses Can Bring Old Neighborhoods Great New Life in 2023
Every city has one, an older, run-down neighbourhood that has seen its share of better years. This neighbourhoods can often feel unattractive to renters and buyers alike, further contributing to their current state.
Regardless of the impression they may give at first glance, these neighbourhoods are rarely lost causes and have the potential spring back to life and return to their former glory. Frequently, all these neighbourhoods need are a little bit of paint, some elbow grease, and passionate investors.
So, if you are interested in learning how, by flipping houses, you can revive an old, distressed neighbourhood, this is the article for you. However, before we get started if you would like to learn how to secure the best financing available to help you start flipping houses, click the link below to book a free strategy call with us at LendCity today.
Old Neighborhoods Can Lose Their Luster (But They Can Shine Again)
Neighbourhoods do not become run down overnight. Instead, they get worn down over long periods of time as, for one reason or another, people stop properly caring for their properties and investors turn their sights on newer, more immediately lucrative investors. Slowly, due to the neglect, once-great neighbourhoods can wind up feeling tired and forgotten, destroying the property values.
However, this does not have to be the end of the story. In fact, with older neighbourhoods, even if home have taken a beating by the years, their structures are typically still in good condition. This means that even if you need to strip down a house to its bones, it may be possible to build them back up to make it new again.
Obviously, one house does not make a neighbourhood, so you cannot expect to see a massive revival in the neighbourhood after just one flip, but if you and your fellow investors put enough time, money, and faith into an area, you will begin to see real change. After all, if the property owners in the neighbourhood begin to see their neighbours’ homes get overhauled and appear brand new again, it may inspire them to start updating their own properties or sell them to somebody who can do it themselves.
Flipping Houses Can Attract New Residents
Naturally, one of the main priorities whenever you are putting effort into revitalising a neighbourhood is attracting new residents into the neighbourhood in order to reignite the local lifestyle and culture of the area. If these neighbourhoods were currently attractive to people looking for a place to move, the neighbourhood would not need reviving, so it is important to consider what people are looking for while completing renovations.
For example, if you find the people are looking for bright, open concept living spaces when searching for homes and rentals, you may want to see if there is an opportunity to knock down or open up a wall in order to satisfy the demands of the home buying and rental markets.
For this reason, a lot of flippers who do so with the intention to bring up the neighbourhood will hold onto property in the area so that they can enjoy some of the long-term appreciation the neighbourhood is going to experience on top of the short-term profits they made from flipping houses.
New Demand for Housing Attracts Businesses
When it comes to determining the ideal location for a business, one of the main questions that business owners will ask themselves is, “where are the people?” That includes both employees and customers. Business owners and commercial investors are naturally going to prioritise areas that are desirable to live in, that way they can do enough business to keep the lights on and turn a reasonable profit.
While most people spend their time flipping houses, once businesses are getting ready to set their eyes on the neighbourhood, it may be worth your time to shift gears to flipping local commercial properties as well. After all, while commercial properties are more expensive than residential real estate on average, it is more than possible to turn a profit on a commercial flip. In order to do this, you can refinish old commercial properties and update all of their hookups to ensure that they are fully operational for businesses looking to move in.
At the same, when you are flipping a commercial property, you may not need to spend as much time customizing the unit as opposed to a residential flip because while homebuyers are looking for a home that reflects their identity, business owners often prefer a blank canvas they can use to apply or develop their own unique branding.
Discover How To Flip A House With This Step By Step Guide
Balancing Flips and Long-Term Investments
Flipping houses is an excellent way to make a meaningful profit short-term while investing in real estate, and by flipping houses in an older area, the profits can be even more pronounced, but it is important to draw the line between your short and long-term investments in order to ensure that your portfolio is going to be profitable and sustainable.
This typically means finding a balance between short-term investments such as flipping houses and wholesaling, and long-term investments such as rental properties. If you truly have faith in a neighbourhood, you are flipping houses in, you may want to consider buying rental properties or gaining equity in the local market so that you can experience the appreciation of the neighbourhood for long after you have finished flipping houses.
However, it may also be wise to buy property outside of that neighbourhood so that in the event the market comes back down after a short period, you do not lose money because you put all of your eggs into a single basket.
Financing Your Next Real Estate Flip
If you are looking to finance your next flip, give us a call here at LendCity. Our agents are ready to work tirelessly to help you find the best mortgage products from the best available lenders as quickly and efficiently as possible. To learn more about which options are right for you, visit us at LendCity.ca or give us a call at 519-960-0370 and book a consultation with a member of our team today. Alternatively, learn how you can secure great financing for flipping houses by booking a free strategy call at the link below.