So just recently I had an investor wanting to purchase an income property that will be income generating, in a good rental location, and close to family friendly amenities. I've been scouring the MLS and finally came across what might be a great investment. It was a semi detached home that was once a single family home - now converted into a duplex by its latest owners who simply purchased the place about a year ago to flip and sell. It's safe to say that walking through the place, the renovations were done quick and with minimal cost; everything was new thanks to IKEA.
Normally when I'm booking showings for buyers I like to show up to the area a bit earlier to not only have a look around, but to also get my own impression of the area and see whether it is in fact a good fit for my buyer. What's great about doing this extra step is sometimes you're able to talk to neighbours and get an impression as to why the owners are selling, or how the neighbourhood is in terms of traffic flow, etc. Well this time I was greeted with what the neighbours have to say. Remember this home is a semi detached property with another single family on the other side. The neighbour noticed that the for sale sign also included a sign that stated the property was a multiplex. It's safe to say that this didn't bode well for the neighbour. He highlighted many concerns about whether there was proper fire separation within the units, asked how many units did they stick in there, and a boat load of other questions.
That was more than enough to have my buyer turn down any idea of placing an offer for the property, and for good cause. You don't want to buy into a property knowing full well in the future there may be issues with your neighbours, by law enforcement, or finding out later that this flip was not done properly with permits and a decision from the commitee of adjustments. So if you look to making an investment in property don't just look at the numbers to see if they work to your favour. Something as simple as a disgruntled neighbour can lead to constant headaches that you simply can't put a price on.
And by the rumblings of what that neighbour pointed out, here's another great tip, If you plan on flipping a property for profit, whether or not you are attached or detached, talk to the neighbours and let them know what you plan to do. And take their concerns seriously because once you go in and finish that flip, those residents still have to live in the area, you don't.