Select Page

Finding the perfect neighborhood doesn’t always mean that it is an ideal place to live or invest in rental property. Taking the time to further investigate a neighborhood is always a smart idea before you make any long-term investments. Here are a few things to always keep in mind if you discover a “perfect” neighborhood.


#1 Picky Neighborhood Associations

One of the most common issues real estate investors have to deal with on a regular basis is neighborhood associations that severely restrict making potential renovations to a home. Many times these associations will stand in your way and make it difficult to make the smallest of changes. Always being aware of these organizations beforehand is essential before you purchase the property.


#2 Historic Designations

You may also be limited in making renovations due to historic designations for buildings. These designations limit potential changes and can cost you a lot more money in repair costs. Typically, it is a good idea to avoid these homes if you plan on making significant renovations.


#3 Rent Restrictions

Some places also have strict rent restrictions, which makes it much more difficult to find tenants. For example, a city may not allow for short-term rentals, or the building may need to be the owner’s primary residence for a year before it is allowed to be rented to others. Always checking out the rent restrictions beforehand is essential before you make a purchase.


#4 Lack of Parking Space

Parking space is a major problem in congested urban areas. This can particularly be a major problem if you have more than one person living in your home. The lack of guest parking also makes it difficult to have visitors come over to your home unless you pick them up or if they park far away. Taking these things into consideration is always important before you buy a home.


Many people look for an ideal neighborhood, whether they plan on purchasing a home to rent or live in themselves. However, finding the perfect neighborhood may come with many different restrictions that significantly limit your options. Always researching in advance is important to ensure that you are well-satisfied with your investment.