I'm a recently new investor that decided to get started in real estate, but due to the cap on my funds to start investing in real estate I'm looking at the sub $100K range for duplexes and between $100-$110K for a SFH. I'm mainly looking for a cashflow rental for my first property since I just want to get used to the flow of being a property manager which is why I'm looking at duplexes, but due to this cap on price it seems like the only area I can invest in are considered relatively high crime rate areas. Is this just due to the market that I've chosen or something that's common for these areas?
And for those who are investing in what’s considered a more “high crime rate area” what do you do to mitigate the risks? One of the statistics that I read was that the average rent around the area I’m looking for is $600 but the average salary of the tenants is around 20-30k, and this is per person (info pulled from City Data). One of the investors I’ve been talking to told me it’s fine and as long I do a proper gut check it’s alright but I wanted to see what other people in similar situations are doing as well.
Thanks in advance and happy investing!
On average you will have more drama in those areas. But one of the cleanest tenants I have is in a rough area. He once told me when you spend 15 years in a 10 by 6 cell you have respect for a home. So there are always exceptions.
I wouldn't worry too much about what city-data says. Those numbers are averages that could include kids and the retired. Better info will come from people in the area.