First Deal - Good Cash Flow/Bad Neighborhood
I am evaluating a listing that has good cash flow but is located in a bad area. My current situation is that I have never owned a property before and currently rent an apartment. I am 25 and have a net of around $50k and an income around $50k/year, so enough money behind where the 20% down wouldn't kill me and I would have enough backing to pay for repairs etc. I am NOT looking to move into this property as it is in a bad area.
Duplex
List Price: $80k
Projected Rent: $1500
- Renting for ~1.9% of list price
- Cash Flow of ~$370/month
- Property is in A+ condition
Obviously this is a good deal. But I am looking for advice on how much work this would take considering likely tenants that are not cooperative and myself having virtually no experience. I have full time job working 50+ hours a week. However, I have the confidence in myself that I could make this work. What are your thoughts on renting in bad neighborhoods, especially for the first time investor? Any advice would be appreciated, thanks!