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.
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