Choosing areas of certain cities.

[Jason Jebeles]

Hi all, I am new to BP and also new to real estate investing. I live near Birmingham, AL and have so far done investing in a city about 45 min from Birmingham. I would like to move into the Birmingham market but had a question as I am searching. I have been advised in my searching that I should stay away from certain areas due to them being very low end and possibly higher crime areas. Even in the smaller town near Birmingham I have received these warnings. I feel like there are great opportunities in some of these places and I am pretty open to buying anywhere, but would love to hear some criteria that others use when buying in some of these labeled areas. Just for context as well my focus is buy and hold (rentals).

[Zane McLaughlin]

Hello Jason,

If you are wanting to do business in an area that will yield a lot of profit then go for it.

Study the area, and make sure then numbers work before you make the move though. I personally don't like doing business in high crime areas because I know that if I have a property in these areas, I am going to have to go there to check on the property and do maintenance type things. But that's just me personally. I think there can be a whole lot of money to be made out of buying in places with high crime rates. For 1: there are a lot of investors like me that don't like these places and stay clear of them, so that opens the door for you. For 2: If you own property in these areas, and then start a petition, or a neighborhood campaign to get the city counsel to clean up the crime in these areas-- and it works, that will improve the value of your properties, and you be able to get more out of rent or sell your properties for more money.

Don't let anyone talk you out of it because they don't like areas like that. If the numbers work, and you don't mind the crime, I say go for it.