Completing a BRRRR in C or D neighborhoods

[Salvatore Amato]

I'm searching for my first deal and I want to do a BRRRR, but with the funds available the only homes I can buy with cash and rehab are in C or D neighborhoods. Since the neighborhood isn't the best, I'm concerned the value of the home won't go up over the years as it would in a better neighborhood.

Does anyone have experience doing BRRRR's in C or D neighborhoods that can give some advice? Thanks!

[Drew Sygit]

@Salvatore Amato appreciation is usually lowest in C/D Neighborhoods, relative to the overall local market.

A bigger concern is how well you understand all the challenges!

1) Theft & vandalism while vacant

2) Maintaining to the Neighborhood and not over or under improving

3) Tenant Proofing repairs to save money

4) Dealing with the tenant pool - which will have under 600 FICO scores

5) Having a GREAT Past Due Rent process

6) Understanding the local eviction process and finding an attorney that specializes in evictions

7) Etc.