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When you’re going shopping for real estate in the middle of an economic recession you can pretty much guarantee that whatever you purchase, you’re going to be able to make a profit. There are certain parts of the country that take a little longer to be affected when a recession strikes, but sooner or later every place is going to start to feel the pinch-which means you can basically stick a pin in the map when you’re trying to decide where you want to make your investment.
Of course, just because you can make a profit just about anywhere doesn’t mean that you shouldn’t take measures to maximize that profit. If you were sitting in the middle of a giant room of sweets that were yours for the taking absolutely free, would you go for the Godiva chocolate or the M&Ms? When you have the choice between a property that you’re going to make a minimal investment on and a property that you will make an incredible profit on when the economy starts rising up again, go for the property that’s going to bring you the best return!
Where are you going to find the best deals? Urban properties and homes in the suburbs of these urban areas are always more highly in demand than those that require a lengthy commute to get to life’s essentials. Homes in the suburbs of Washington, D.C. are going to sell for a greater profit (and much more quickly) than a home in a small town like Rexville, NY. (Don’t worry if you’ve never heard of it-most of the rest of the world hasn’t either!)
When you first begin investing it’s usually recommended that you pick a property close to home, where you know the neighborhood, the general ambiance and, most importantly, what sells! If you choose to do your own rehab this is particularly important, as there are many areas in the country that are particularly prized for their historical value and which will bring a much lower return on your investment if they’ve been stripped and decked out in the latest style than if they’d been carefully restored. An experienced rehabber will know this. A beginning investor will not.
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