How Can House Flips Improve the Surrounding Neighborhood?
House flipping can be a successful strategy for real estate investors with a tolerance for risk and the tenacity to find deals. The profits in purchasing properties and rehabbing them for resale can be great, but there's an even wider reward that can come with improving a single home: The rest of the neighborhood can see a jump in home values as well and the neighborhood might even get safer.
Christopher Totaro, an agent for Warburg Realty, a Manhattan firm that has built, managed, and brokered properties since 1896, said that a single-family home flip has the potential to boost the resale of surrounding homes. "When a property sells at a higher price, the net effect is that all property values improve," he said in a November email to The Motley Fool sent via a representative. "Think of it as the bar being raised for the price that the next property achieves when it is sold."
Totaro noted that the improvements on a single property can offer enough curb appeal to make the entire street more attractive. "This is especially impactful on a street that is near the tipping point of too many properties in a less-than-attractive state," he said.
Source Fool.com
