War zones vs opportunity zones

5 Replies

Hello BP

Interested in hearing from active investors that are successful in BUY & FLIP and/or BUY & Hold strategies in "war zones". But first, do  class B neighborhoods with crime fall into the "war zone" category? Currently the concept of opportunity zones is gaining momentum so also curious about how that plays into the general strategy of avoiding "war zones".  How do you know if a property is in a war zone and are there investors that are doing ok with flips or rentals in war zones.

My impression is every location/city is different. And most investors would do well to not confuse C class from war zone. Frankly, some smaller cities and towns don't have war zones. War zones, to me, are places I don't even want to be walking on the streets at noon. While C class on the other hand might be okay to invest in but be prepared for more hands on management of your property, both in terms of attributes and fixes to the home and tenant management. Further, war zones are likely to have high rates of crime, drugs, unemployment, vandalism, theft etc. Whereas, C class may have higher rates of crime relative to other areas of the town or city but that crime is largely non violent and lower felony rates. So if you're considering an OZ ask yourself if it is a C class OZ or a WZ OZ. The former may be acceptable and advantageous and the latter... not worth it in my junior opinion.  

@Jay Hinrichs your dad would have done well to buy here in the 30s and hand you the keys. But clearly you've done exceptionally well without the help. Watch out for the flying cherries and apples in this war zone. :) Full disclosure, we have it good here. 

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