Are crime stats enough to justify designating an area as A, B, C, or D?

Question

I'm going thru a spreadsheet of all crime from the city of Phoenix, to identify areas I don't want to invest in, and the areas with really high murders etc I'm going to stay out of, are there other criteria I should use as well? Thanks and happy Mother's Day!

Carlos Ptriawan · Answer

There're two type of investors in Biggerpockets:

1. Those who avoid high crime area
2. Those who invest only in high crime area.

So it doesn't really matter really.

There're folks that invest in location,location,location, and there's also looking for price,price,price.

At the end of the day, it's all about your risk tolerance.

Blake Peterson · Answer

@Marcus Brown

Cities and metros also post city planning that shows future developments and investments. Might be worth your time looking for Phoenix's plan and try to invest in an area that may be considered C or D, but is having major city investments coming soon. I know lightrail is expanding in Phoenix, you could see if there are new plans outlining the next levels of that expansion. Universities also post expansion plans, which could help you locate areas where student housing would be in demand in the future.

Karl B. · Answer

I would look at population growth/decline as well and building numbers also.

Ideally, an area with a growing population and a lack of new builds tends to = improving neighborhoods.

Also, once you have an area narrowed down by all means contact the local P.D. and ask for an officer who works in that area to call you and ask him/her some questions such as is the area improving or getting worse?

Bob S. · Answer

TERRIBLE way to invest, ITS ALL about price , price price , NOT location location location. to a certain degree, I have props that the internet would say stay away, well that info would be 100% inaccurate. Its all about your knowledge and your team

Account Closed · Answer

You are smart to learn the areas. Buying houses and putting thugs and gangsters and cartels in, isn't a pleasant way to spend your time or money. When they don't pay, or they tear up the property, what are you going to do?

DM me and let me know what you are looking for. I know the Phoenix market very well and I can give you some guidance.

Vadim F. · Answer

When people talk about bad areas that are riddled with crime, they just throw out the zip code its located in without other details. What they aren't telling you is that it is very block by block. Get a good team in place that knows the areas inside out and you can invest in those areas safely.

Bob S. · Answer

As mentioned, price to a point, you do not want to be next to a drug house but than again I have a duplex that is 3 doors from the " Crips" Guess what no issues. However, I have props that the internet will say stay away, but they are incorrect. Price price price, for the most part,. I just picked up a 7 unit all in 200k with about 40k NET rent. If I paid 400k, not good for the location. . Its a rental, a rental is a tool, to make money, end of story, so many get to emotional. Sitting on the internet will not tell the entire story. I would NEVER live where I have props, but they pay for my lifestyle,
All the best

Blake Peterson · Answer

@Scott Johnson

I'll go to different parts of the city and see what it has to offer. Are the parks well kept up, is there garbage lining the streets, are there busy restaurants/coffee shops/bars, how do the homes look from the street(are they kept up or run down). Just try and get a feel for the area during the day and night.

Scott Johnson · Answer

I feel like this is a key part to the puzzle. Looking at master plans. Zoning is how you can predict the future. I've also been looking at major road projects to see what the Dept of Transportation in my state is up to. Higher profile projects can tell you a lot as well.

What other things have you been looking at to understand an area, Blake?

Are crime stats enough to justify designating an area as A, B, C, or D?

Are crime stats enough to justify designating an area as A, B, C, or D?

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