Entrepreneur of the Week Shoshi and Hanoch Dombek Post 4

Good Morning,
Thank you so much for the support and likes, it is not obvious and really warms our hearts ????
We continue today with a few more points for reference before purchasing a property.
There are a number of environmental factors and / or hazards that need to be checked and paid attention to when purchasing the property. It's not that people do not buy homes near an environmental hazard, but it does reduce the potential buyer audience and may affect the time and price of the sale / rent:
Flood Zone Property - The Federal Emergency Management Agency (FEMA) defines various areas in the United States as risk areas for flooding. Buyers will be afraid to buy a property that is in a risk area for two main reasons: 1. No one has an interest in having their home flooded and possibly demolished (even if they have insurance) 2. The mortgage bank requires purchasing special insurance in case of flooding, which micromanages the buyer’s current expenses.
Our first flip was in one of the most sought after areas in Atlanta. After we had already renovated the house and put it up for sale, it became clear to us that the house was in a flood zone. And how did we find out? The buyers' agent called and said: Houston we have a problem, the house is in a flooded area and buyers are worried. We were ashamed to admit we have no idea what she's talking about. A quick Google search and we fainted. We invested over $ 300 in this house and we were afraid that the money would go down the drain. Two days do not sleep at night. We explored the topographic area in great detail, and after many tests and measurements we were able to convince FEMA to change the definition of the house and remove it from the flood zone. We survived! The buyers who really liked the house were happy, and we too were back to breathing. Several years have passed since then but the feeling that the ground is collapsing we remember very well. As a comprehensive recommendation, it is advisable to avoid buying a home in a flooded area. Although we were able to change the setting, it is not a simple move and requires obtaining accurate data and proof that other houses in the area under similar topographic conditions are defined outside the flood area.
Property close to an environmental hazard - For most of us, it is clear that most people prefer to avoid buying a house near high voltage lines, oxidation basins, swamps and railway tracks, but problematic topography can also be a hazard, for example too steep a slope to a house or a low house.
And another story from life, we bought an unfinished house from a contractor who went bankrupt. The attractive price blinded our eyes and we ignored a conspicuous warning sign. Main road on the border of the backyard. The house was large, prestigious, in an excellent neighborhood and the price… gentlemen the price… we could not stand it. As usually happens in such cases, we convinced ourselves that it would be okay. After all we will be renovated and it will be so amazing that the buyer will not even feel like he has a road in the backyard. Yes, these are the stories we tell ourselves to beautify reality. In practice we had to wait for our buyer for almost a year! The buyer's appraiser dropped the property's $ 16,000 because of the proximity to the road and we cut the price far beyond what we intended. So it is true that we bought cheaply and in the final calculation we made a profit and still, it was a long year and a wrong business choice.
From our experience, it is worthwhile to add to the list of hazards a main road or a commercial center on the border of the backyard. A stream flowing in the yard is not only a ripple of water but can attest to groundwater under the house. We do not say no in a big way, and everything should be checked for the substance of the matter but do not ignore warning signs.
Crime neighborhood - you can check the crime rates in the area on the TRULIA website and other sites. In general, when you see pictures of houses with a lattice gate on the front door and / or bars on the windows - there is a situation that you are in a problematic neighborhood.
Sex offenders in the neighborhood - you can check on designated sites whether a sex offender lives near the house. In the United States, public safety outweighs the right to privacy and there is transparency about the offender's name and place of residence.
Neglected neighborhoods - cars or scraps abandoned in the yards, weeds high and ungroomed yards. Junk properties, for example, are located in neglected neighborhoods that invite a certain audience of buyers. Alternatively a neglected property in a well-kept area lowers the value of the houses near it and the average buyer will be less enthusiastic about living near a scrap collector.
And one more thing to note, there are subdivisions where the HOA restricts or prohibits property rentals. If you are purchasing a rental property in a neighborhood that has HOA it is very important to find out this point in advance.
Tomorrow is a Thursday post with some tips for renovation, why wait ????
imply,