Finding the right neighborhood

[Dana Hagans]

How can you tell if an area that you're looking into is great for flipping, the BRRRR Method or long term rental?

[Ben Firstenberg]

For flips or BRRRRs, the best way to tell is with ARV comps. You should be able to find 3 or more homes that are similar to what yours will be after renovation and that have values supporting your "exit" value. These should be homes that have sold in the past 3-6 months and should be within 0.5-1.0 miles. Areas that are changing quickly or unevenly are typically best. For example, in Atlanta there are places where you'll find broken down ranch homes next door to million dollar new construction homes.

For a long term rental, take a slightly wider view of the area. What are the local schools like? How safe is the neighborhood? What's the quality of the local retail centers? Are there jobs nearby? Is it generally a desirable place to live?