Author: Jermaine Filmore

Beginning as a young entrepreneur with a dream, I’ve owned and operated several small businesses ranging from a successful recording studio located in the heart of New York City on 5th Avenue, running a bustling video store in neighborhood in the Bronx, F&F DVD Rental, which brought together families and community, and opening a barbershop, Fame & Fortune Unisex Barbershop, which was transformed from a hole in the wall, into a swank, upscale establishment in a Bronx neighborhood of which the people grew to love and appreciate the positive change that the shop brought to the area. The demolition and reconstruction of the barbershop, coupled with the purchase of my first rental property, traversed me to my love of everything real estate. I am now fully committed to the prospects of investing in properties, flipping dilapidated homes, providing rental units to valued tenants and most importantly partnering with other investors who share the dream of buying back the block. Additionally, I am in the process of writing a modern day take on “Think and Grow Rich” by Napoleon Hill , which will demonstrate for aspiring entrepreneurs, the art of business through relatable success stories ranging from greats such as Jay Morrison, Jeff Bezos, Howard, Schultz, Jay Z, Tyler Perry, and Michael Jordan. By borrowing elements of their efforts and following the path of these colossal giants who worked their way to the top from the ground up, I provide my take on how having a desire is the starting point of achievement and great fortune.
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The advantages and disadvantages of buying in each different real estate target market.

 BY: Jermaine Filmore

When trying to determine the characteristics of  your target market, there are only three options that you have. The first is buying homes in lower income neighborhoods. The second is buying homes in middle class neighborhoods (referred to as “bread & butter” homes). The last option is buying in upper-end neighborhoods. With these options now it will depend on what your investment objective is and how much risk you are willing to take. Here are the advantages and disadvantages of buying in each different real estate target market.

     Here’s a blueprint  I found to give you a good breakdown on the three different real estate market.

 

Lower-Income Neighborhoods (The Hood)Advantages of Buying in Lower-Income Neighborhoods:

  1. Houses are cheap
  2. There is a high foreclosure rate
  3. People need to rent homes in the hood
  4. There are a lot of abandoned homes in the hood
  5. People are moving back into the hood.
  6. Better cash flow

Disadvantages of Buying in Lower-Income Neighborhoods:

  1. High turnover rate
  2. Job instability
  3. High crime activity
  4. Possible Damage to property (from tenants)
  5. Harder to rent and resell
  6. Less property appreciation

Middle-Income Neighborhoods Advantages of Buying in Middle-Income Neighborhoods:

  1. Better job stability
  2. Less crime
  3. Better quality of tenants
  4. Better property appreciation
  5. Easier to sell

Disadvantages of Buying in Middle-Income Neighborhoods:

  1. Less cash flow
  2. Harder to rent (because people in this market buy homes)
  3. Higher property taxes
  4. Higher insurance
  5. Cost more to rehab

Higher-End Neighborhoods Advantages of Buying in Higher-End Neighborhoods:

  1. You can make a bigger profit
  2. Better appreciation (will depend on area and state)
  3. Less competition when buying

Disadvantages of Buying in Higher-End Neighborhoods:

  1. May have to pay Homeowner Association fees
  2. May take longer to sell
  3. Higher property taxes
  4. Higher property insurance
  5. Can not cash flow if hard to rent the house

 

Jermaine Filmore