I've read many books on this stuff and I've heard a few times not to buy in neighborhoods that you wouldn't feel comfortable walking around in, etc.
Wanted to know your take on buying places that show good numbers but in a not good neighborhood. And on top of that, getting new tenants could be an issue....as the language barrier would hurt me.
There's a couple long term tenants in there now, house has been updated except for the mechanicals, etc. Not a great house, but not a bad house.
Was thinking of throwing an offer out there, but I don't know if the potential issues outweigh the numbers, etc.
Any thoughts? Pros/Cons, etc?
No matter how good a deal looks on paper, once you have a property in a "bad" neighborhood, vacancy, maintenance and vandalism will eat up profits. Keep in mind that the definition of a bad neighborhood is in the eyes of the investor.
The numbers always look good when the area is ugly! But no need to run for the hills just yet. 😏. There are several factors that I consider when looking in a bad area : 1. Is it on the edge of a good hood/ transitioning area. 2. What does the street look like. 3. Is it quite. 4. Are there any public funds earmarked for the area. 5. How close is it to downtown/ walkable area. Other people have written in much greater detail and there are a few podcast s on buying in "bad" areas. Check out Al Williamson's stuff (no relation) that I know of).
We bought a duplex in what people refer to as "the bottoms" our next door neighbors are drug dealers along with a few others on the block. 😅 But it's honestly not bad at all. Just make sure if you are going to invest in an area like that there is some momentum public or private or both.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing