I see a good financial decision getting 8%+ cap, but it does have bars on the windows and a steel cage for a screen door. OK or what??
I mean, does that just mean that security is in place and all good, or I need to set up cameras?
Talk to the neighbors, get police reports. Often by keying in an address into a browser unexpected stuff pops up-and not just RE stuff.
Or it may have been owned by someone who prioritized security. Doomsday Style!
Check out the community, if majority of home are the same then you are looking at a prison not a community.
Probably not a good location to invest although this should depend entirely on the numbers. Based on your impression of this being a 8+ cap it is a terrible investment. If this is a prison zone, where residents live in fear, you should be seeking double that cap rate.
Definitely do your due diligence when looking at a house with bars on the windows and doors. That's a sure fire sign that you're in a bad neighborhood. Whatever numbers you're looking at or being told, are likely pro forma projections. You might POSSIBLY hit those numbers, but your actual returns will likely be lower due to the lower class of tenants you'll inevitably be dealing with and the higher costs typically associated with that in terms of increased vacancy, tenant damage, unpaid rent, court costs, etc.
My neighborhood is not a crime area. I have had bars and security doors put on my houses for my peace of mind, for my pocket, and because of some physical problems. I'm not the only one in the area with bars that are paid for. Many owners have electronic security and monthly bills, alarm codes to plug in, and rush to turn off when they get home.
There are a lot better looking security screen options available that are nearly undetectable by the naked eye. If you can justify the investment I would pull the jail bars down. Just google “invisible security screen” and you should be able to find products / contractors for your area.
@Randall Prosise my first property had barred windows. Problem was, the neighborhood was also junk. See what is common in the area.
Thanks everyone for your valuable insight! Well noted, and I will further my due diligence on this one (and others I encounter).
I take it this property is out of your local area and you don't know it well? Definitely want to learn about the area you will buy in.
I previously lived in an area where a number of people had bars in windows, but there actually was little crime. I think it was the mentality of the area. However, there's probably a good chance there is a crime problem where your potential property is.
do a throughout property and neighborhood search . It could be the neighborhood is know for crime and people being robbed or a very paranoid individual. Either way do your Due diligence and trust yourself and what you find
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