Investing in the rougher neighborhoods
Hi All,
So I've signed up to several cash buyer's lists on wholesaler's sites in my city, Miami. As a newbie, I did this for several reasons but mainly to get a feel for what other the wholesalers are teeing up for their buyers and maybe even jump on one of their deals for my own.
I've noticed (what may seem obvious to the more experienced) that the majority of the deals are in the rougher areas of town; even more evident when looking at a geographical map of recent cash transactions. What I'm trying to figure out, and hope I can get some answers from local investors, is whether the rehabers and landlords prefer these less expensive homes or are they just easier to obtain from the wholesaler point of view.
See I'm just starting my marketing campaigns but I chose the neighborhood I live in to begin with, where the median SFH home value is roughly $250K. I figured it'd be easier to become an expert of my own neighborhood. I have a full time job here and two small children, which obviously limits my availability to drive around and study. I really just want to break the ice here and then potentially expand. But I'm worried that I may be looking in the wrong places. My #1 focus right now is to wholesale that very first contract just to go through the process and the confirmation that it can be done. I'm not even too worried about cashing in; just want to experience it and learn. The sooner the better.
Thoughts?
P.S. As I was writing this, I thought of an idea of even giving up all my profits to a good-quality buyer just as a display of me being serious about this and in it for the long run. I can view my marketing expenses as tuition for the best course there...hands-on experience. Still thinking about it though... =)