Renting in warzones, is it even remotely sensible?

Question

I am amazed just how low prices fall in war zones. Cash flow is my main focus right now and I'm thinking if I tenant-proof the property and stick with section 8, where there is a multi-year waiting list just to get on the program and incentive to behave, it might be doable.

In Long Beach for example, there are D+ and D-/F areas. The difference is that D+ is normally quiet, but "things happen" occasionally in the D+ area (not a place to roam around in on foot at night). D-/F is the active gang presence, chrome rimmed cars driving around constantly area. I would at least stick to D or D+ type of area (not in long beach though).

Is renting in warzones ever a sensible plan, or just plain best avoided due to the risks?

Gary Dezoysa · Answer

That sounds like a smart tip for keeping safe! I had to live in a D+ area during college and it did seem the folks who created issues were not awake before 2 or 3 pm :)

I also agree about not wanting to choose an area like this at least permanently. My thoughts are for the first 5 houses, cash flow is worth a bit of risk. After that, move to the middle income areas for a better balance of cash/wealth accumulation.

My main concern is how the local housing authority would view D area rentals. Do they have rules against placing tenants there? Or other similar issues? If so then that could scuttle the plan.

Patti Robertson · Answer

I have a few in war zones, but would never choose it.  In my cases, the prices were too good to pass up.  I won't buy 100 year old houses though, even if they are being given away.  My rule is that we all be out of the neighborhoods that show up in the news no later than 3pm.  The trouble almost always happens after dar.