City Areas and DSCR, etc.
After learning about cash return on investment and debt service coverage ratio, it seems to me that a nearby city to me, Harrisburg, PA, would be an optimal place to achieve the appropriate numbers.
I've been told 2.0 for DSCR is solid and Cash ROI above 25% is a good target.
In Harrisburg, properties can be bought for 15,000 with 7,000 put into them with potential rents of 800. With teh appropriate financing terms, that would be close to the targets I mentioned above.
This is much more appealing than properties in my current town which can be bought and repaired for 20,000 but can only rent for 500. Rent doesn't get much higher around here.
Do any of you target city low-income type areas to meet these targets? (Not talking about war zones, just in general).