Finding Deals in B and C Neighborhoods

Chicago, Illinois
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Finding Deals in B and C Neighborhoods

Jennifer Dargento
New to Real Estate · Member since 2023 · 22 posts · 11 votes

I know there are many ways to pull lists of motivated sellers and distressed properties. My question is what’s the most efficient way to weed out the properties in headache neighborhoods (D class, etc)?

Is there a way to pull lists of opportune properties that are exclusively in B and C class neighborhoods?

I’m open to software/website suggestions if Propstream or Launch Control etc have a way of doing this.

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Paul De Luca
Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
3y
Quote from @Jennifer Dargento:

I know there are many ways to pull lists of motivated sellers and distressed properties. My question is what’s the most efficient way to weed out the properties in headache neighborhoods (D class, etc)?

Is there a way to pull lists of opportune properties that are exclusively in B and C class neighborhoods?

I’m open to software/website suggestions if Propstream or Launch Control etc have a way of doing this.


 I don't have experience with those services so I can't say if there is a filter you can use to do that, but I'm a fan of this website https://www.niche.com/places-t... for grading neighborhoods.

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  • John Swann
    Rental Property Investor · Charlotte, NC · Member since 2020 · 15 posts · 15 votes
    3y

    Hey @Jennifer Dargento, congratulations on getting started! A huge first step that most never take.

    I'd recommend trying PropWire first. It's free and operates much like PropStream. You can search by zip code and filter through different motivators (foreclosure, probate, absentee, etc.). 

    If you're looking for properties in Chicago, you'll know what neighborhoods are B and C class.

    1Reply
  • Chris Stonestreet
    Member since 2019 · 42 posts · 26 votes
    3y

    Hey Jennifer, good luck with your journey into real estate investing. I am unaware of how to do this through Propstream as I am newer to it myself. However, I have generally used realtor.com's feature that shows "crime" in the areas to identify the better neighborhoods and weed out the worst ones. I am in a smaller area with less crime than a major city so we have very little D Class neighborhoods, so I know that makes it easier for me. However, I have used it when analyzing other markets like Birmingham as well. Hope this helps a little!

    1Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    3y

    I don't believe there is a filter to sort by neighborhood grade - after all this is subjective. 

    I would do a couple of things - first locate the areas you know are "good" - by schools, crime, amenities, access and just your general knowledge and feel for the area. You can call PMs and see what areas perform well for them, what areas are bad/they won't manage in etc

    Now pull your list (filter by zip code)

    Then mail out your flyers - see what sticks and what you get contacted about. From here filter what you would be interested in based on location/price. 

    So you end up sending out a few extra flyers but you have narrowed down the properties to people who actually may be interested. Gives you a lot less to sort through - and you're doing something you'd be doing anyway. By that I mean you're likely going to look into every property you get contacted about anyway - but this will be your smallest list to actually look into. A lot less work/time consuming

    0Reply
  • Paul De Luca
    Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
    3y
    Quote from @Jennifer Dargento:

    I know there are many ways to pull lists of motivated sellers and distressed properties. My question is what’s the most efficient way to weed out the properties in headache neighborhoods (D class, etc)?

    Is there a way to pull lists of opportune properties that are exclusively in B and C class neighborhoods?

    I’m open to software/website suggestions if Propstream or Launch Control etc have a way of doing this.


     I don't have experience with those services so I can't say if there is a filter you can use to do that, but I'm a fan of this website https://www.niche.com/places-t... for grading neighborhoods.

    2Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    3y

    Hey @Jennifer Dargento - I'd suggest just filtering out zip codes through Excel. Export your data and then I'd hire a VA to do that work.

    That's what we did, but more so the opposite we were looking for areas on the SE side of Chicago along the lake.

    Happy to connect and talk through your strategy more if that would help!

    [email protected]
    Quality Builders4.966 Reviews
    WebsiteView Page
    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    You will have to filter this through the ZIP Code.

    0Reply
  • Jennifer Dargento
    OP
    New to Real Estate · Member since 2023 · 22 posts · 11 votes
    3y
    Quote from @Chris Stonestreet:

    Hey Jennifer, good luck with your journey into real estate investing. I am unaware of how to do this through Propstream as I am newer to it myself. However, I have generally used realtor.com's feature that shows "crime" in the areas to identify the better neighborhoods and weed out the worst ones. I am in a smaller area with less crime than a major city so we have very little D Class neighborhoods, so I know that makes it easier for me. However, I have used it when analyzing other markets like Birmingham as well. Hope this helps a little!

    This is helpful, thank you!
    0Reply
  • Jennifer Dargento
    OP
    New to Real Estate · Member since 2023 · 22 posts · 11 votes
    3y
    Quote from @Eliott Elias:

    You will have to filter this through the ZIP Code.

    Is there a way to see crime rates associated with zip codes do you know?

    0Reply
  • Jennifer Dargento
    OP
    New to Real Estate · Member since 2023 · 22 posts · 11 votes
    3y
    Quote from @Paul De Luca:
    Quote from @Jennifer Dargento:

    I know there are many ways to pull lists of motivated sellers and distressed properties. My question is what’s the most efficient way to weed out the properties in headache neighborhoods (D class, etc)?

    Is there a way to pull lists of opportune properties that are exclusively in B and C class neighborhoods?

    I’m open to software/website suggestions if Propstream or Launch Control etc have a way of doing this.


     I don't have experience with those services so I can't say if there is a filter you can use to do that, but I'm a fan of this website https://www.niche.com/places-t... for grading neighborhoods.

    Thank you so much!
    1Reply
  • Jennifer Dargento
    OP
    New to Real Estate · Member since 2023 · 22 posts · 11 votes
    3y
    Quote from @Jeremy Horton:

    I don't believe there is a filter to sort by neighborhood grade - after all this is subjective. 

    I would do a couple of things - first locate the areas you know are "good" - by schools, crime, amenities, access and just your general knowledge and feel for the area. You can call PMs and see what areas perform well for them, what areas are bad/they won't manage in etc

    Now pull your list (filter by zip code)

    Then mail out your flyers - see what sticks and what you get contacted about. From here filter what you would be interested in based on location/price. 

    So you end up sending out a few extra flyers but you have narrowed down the properties to people who actually may be interested. Gives you a lot less to sort through - and you're doing something you'd be doing anyway. By that I mean you're likely going to look into every property you get contacted about anyway - but this will be your smallest list to actually look into. A lot less work/time consuming


     That’s helpful, thanks for sharing!

    0Reply
  • Jennifer Dargento
    OP
    New to Real Estate · Member since 2023 · 22 posts · 11 votes
    3y
    Quote from @John Swann:

    Hey @Jennifer Dargento, congratulations on getting started! A huge first step that most never take.

    I'd recommend trying PropWire first. It's free and operates much like PropStream. You can search by zip code and filter through different motivators (foreclosure, probate, absentee, etc.). 

    If you're looking for properties in Chicago, you'll know what neighborhoods are B and C class.


     Thanks for the recommendation, I will check out Propwire!

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    I'd recommend investing in areas you know well enough to know, rather than relying on a system in an area you don't.

    0Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    3y
    Quote from @Jennifer Dargento:

    I know there are many ways to pull lists of motivated sellers and distressed properties. My question is what’s the most efficient way to weed out the properties in headache neighborhoods (D class, etc)?

    Is there a way to pull lists of opportune properties that are exclusively in B and C class neighborhoods?

    I’m open to software/website suggestions if Propstream or Launch Control etc have a way of doing this.


    I'm not sure any tool exists to "weed out the properties in headache neighborhoods"  From your profile it looks like you are in Chicago.  Our tool when working in certain neighborhoods in Chicago - Google Street View- If there's more than one vacant/boarded-up property on a block or cars parked on lawns we will take a hard pass.  The exception to the hard pass is if we have a plan to purchase more than one property on the same block. 

    Regarding pulling a list or opportune properties in B & C class neighborhoods, I'll send you a DM on the software that we use.

    312-681-7487
    0Reply
  • Jennifer Dargento
    OP
    New to Real Estate · Member since 2023 · 22 posts · 11 votes
    3y
    Quote from @Crystal Smith:
    Quote from @Jennifer Dargento:

    I know there are many ways to pull lists of motivated sellers and distressed properties. My question is what’s the most efficient way to weed out the properties in headache neighborhoods (D class, etc)?

    Is there a way to pull lists of opportune properties that are exclusively in B and C class neighborhoods?

    I’m open to software/website suggestions if Propstream or Launch Control etc have a way of doing this.


    I'm not sure any tool exists to "weed out the properties in headache neighborhoods"  From your profile it looks like you are in Chicago.  Our tool when working in certain neighborhoods in Chicago - Google Street View- If there's more than one vacant/boarded-up property on a block or cars parked on lawns we will take a hard pass.  The exception to the hard pass is if we have a plan to purchase more than one property on the same block. 

    Regarding pulling a list or opportune properties in B & C class neighborhoods, I'll send you a DM on the software that we use.


     That’s a great tip, thank you!

    0Reply
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