Ideas on areas to invest in

[Mathew Morford]

Currently, I am renovating my home to get a HELOC or sell. I have a good amount of equity, so I am just getting ideas of where I want to be at. I have been doing plenty of research in short-term and mid-term rentals, but I am a little nervous with what I am seeing with a friend's situation.

My friend just finished a flip in Franklin, IN. From what I have seen from market research, it is a desirable area. The issue is, that the house he bought to flip, I guess is in a "not so desirable" neighborhood in that market. The listing price he has it for is, in my opinion, fair. The home was built in the 90s and wasn't too bad of shape, but he dumped a lot into it to get it where it is today. From what he has told me, he hasn't gotten any offers on it due to the neighborhood. This neighborhood does have a HOA, but I don't think that is the issue. Franklin has great schools, low crime, its a small - medium size town, but considered rural. Is that common? Is lowering the asking price the only way to solve this issue?

 With this situation, it makes me wonder what tools he could have used to figure out if that was a good flip or not. I believe using Redfin and Zillow would have helped, but how would you know if a neighborhood is in demand or not? 

Also, this situation makes me wonder if just getting a HELOC is the only way to go. I was thinking of selling, then buying a property to build on, while investing else where, but Im just wanting to get opinions from what other people think of the situation and how it compares to the whole market entirely.

I know this sounds like a stupid and confusing post, but Im trying to make sense of it all and I am on the fence about selling my house or a HELOC. I just want to make good choices and this is the first place I thought of to ask for help.

Thanks to all who respond in advance. 

[Savannah Remkus]

Hi Matt! I would recommend in this scenario connecting with a buyers agent that is well versed in working with investors. The "price" you pay to a buyers agent will come back 10 fold when working with really knowledgeable, trustworthy market experts. I am a local chicago mortgage lender but we are also licensed in IN and surrounding areas and I would be happy to connect you with one of our trusted partners. Happy to be a resource for you however I can!