Guys and gals,
I think we have to clarify what we mean by C & D areas. Also, people are forgetting there are "F" areas too.
I started investing in F areas.
Fs - are the war zones: it's where every other house is boarded up. Fs are where 90% of violent crimes in a city happen. Fs are hard to manage and there's constant headaches and problems. And yes, your life can be at stake as in these areas, you can get shot or stabbed. No newbie investor should start with Fs. I did because I didn't know any better. I made money with it by being hands on and as @Jay Hinrichs correctly pointed out, you need scale - which I did because I started owning a 28-unit building in an F area and luckily for me, the area gentrified and I sold it for a $200,000 profit.
Cs are great cashflow maker. My C tenants actually call before the due date and inform me they are going to be late with rent. Some of them are on section 8 and some aren't. Cs appreciate in value and lately, in Cincinnati, the rents in C areas have been increasing like crazy.
To prepare for the coming recession (or market correction), it's always good to have properties in C areas. Cs made me a lot of money specially during the Great Recession. Out of the 1,000 apartment units I own, I would say 70% of them are Cs and 50% of my tenants are on section 8.
To succeed with Ds, you need to have them on government or non profit housing program or subsidy to minimize rent collection problems . A wise investor once said that D stands for Drama and Depreciation. I agree 100%. Ds are a step above Fs and there is a boarded up house every other block so it's not as bad as Fs. Ds, generally don't appreciate.
To the OP who started this post: yes, you can make money with Cs and Ds. I literally made MILLIONS with them. But, you got to be hands on and you need scale. And knowing what I know now, don't even do Fs. Life is too short and there's more to life than money.
