When you ask the question, “Where should I look for investment properties?” the seasoned real estate investor will tell you “Everywhere.” And while that may be true, that same real estate investor probably has a specific neighreal estate investingborhood or part of town where most of her own properties are located.

Yes, you should always be aware of any potential deal in any circumstance but there are a couple of things to keep in mind.

The first is the area to avoid. One of the tenets of real estate investing is finding a distressed property that needs work, buy it at a bargain basement price, fix it and sell it. But you also need to consider the neighborhood where the property is located. When someone buys a home to live in they also buy the neighborhood and the amenities in and around it. Is the home close to public transportation? What about the school system? Is shopping nearby?

If you find a home in poor condition that you think is a real bargain, consider the area. Is there an abundance of properties in a similar run-down condition? If so, why is the neighborhood in such poor shape? Regardless of the buy and sell price, how long would it take to sell the home? These questions need to be answered honestly and don’t let the “bargain basement” sales price fool you.

On the other hand, look for a distressed property in a more upscale neighborhood where homes are in fine condition. That’s where you can find a bargain as well as identify an area where the home can sell quickly. You want to locate a property that needs work but also next door to an attractive home. When you find a real deal in a popular area, that’s where you should look. It’s easier to set a sales price and you’ll know how long it will take to flip. Flip where people are buying.