First let’s discuss the pricing of urban real estate. If you keep your ‘ear to the ground’ so to speak you can find some real hidden gems in the urban real estate market. Not every low price is a good deal, of course, and just like with every real estate investment that you ever make, you should be certain that you do your homework.
Really great deals turn up in every real estate market for one reason or another. Don’t miss those terrific investment opportunities simply because the property is in an urban area.
Let’s not overlook the fix and flip opportunity afforded by urban real estate investments. Okay, let’s face it. Today’s real estate market could be better….a lot better…but just because the over-all market doesn’t seem to be all that healthy at the moment that doesn’t mean that there aren’t some great fix and flip opportunities out there and particularly in the urban areas. The trick to making a profit on an urban property is to sell with incentives included and, if it is a rental property, with a tenant already in residence.
Don’t forget about the good old government of the United States of America. The government funds projects to rehab entire neighborhoods in urban areas and they do soon a regular basis. The local government gets funding and usually offers attractive incentives to developers and home owners investing in these urban neighborhoods.
Not only that but you can some really astounding interest rate offers that will let you keep your money in your pocket and out of and danger at all. This creates a win/win/win situation. The government gets to spend money which they seem to do so well. The inhabitants of the neighborhood get better housing and you make a nice profit. Everybody wins!
There is the tired old real estate saying, “The only three things that matter in real estate are location, location and location.” That really is NOT necessarily true. Do you remember playing the board game Monopoly when you were a kid? Remember those first little properties that were located right at the beginning of the game?
They were cheap. They were REALLY cheap. If you bought one of those right out of the gate, so to speak, you could have a hotel up on it almost immediately and every player in the game was going to have to land on it and pay you. It was a pretty good location but not an expensive one. It was one that you could afford to make improvements on quickly.
Remember? Think of investing in urban real estate like you would think of investing in Baltic Avenue or Mediterranean Avenue. You don’t pay much for the property but improvements don’t cost much either and you can make a profit easily and quickly. It was good strategy for Monopoly and it is a good strategy for real live urban real estate investing.
Urban property investments meet all of the criteria for sound real estate investing.