Investing in up and coming neighborhoods built by Habitat For Humanity

[Shaniqua Dupree]

So this weekend i volunteered with habitat for humanity in baltimore maryland. They are renovating at least 10 homes on this block which makes me think that this is a gold mine. Is it a good idea to purchase a property on this street based on the fact that the properties are going to going up in value? The inside of the homes that are being renovated are very nice. What would you do?

[P. Martin]

Could you compete? Or would you be faced with trying to compare prices of heavily subsidized houses. Keep in mind Habitat is receiving the prop for next to nothing and then rehabbing with donated labor and subsidized materials.

Also what would your comps be? Habitat homes are usually from what I have seen in depressed areas with little sales activity. 

You then need to consider the resale and price restrictions in place on the habitat owners.