Moving into better areas. Tired of the lower income hassles.

[Account Closed]

Ever since I finally sold our four complexes in a C/D area of New Haven County, I've been refocusing my efforts into better areas. I know the rents will not be be as strong, but I am hoping for better tenants and less BS from the lower income properties. I am also trying to get properties within 30 minutes of our office so we can manage them directly. I've relocated to Stamford, so I am trying to stay in Stamford, CT, Greenwich, CT, Norwalk, CT, Yonkers, NY, and New Rochelle, NY. It's hard to find good deals, but the one I am working on now is 1.9m and throws off 170k gross. I am hoping for a Freddie Mac SBL, and it should net around 5.5k after expenses.  The biggest way I am cutting costs is if they are in my area, I will manage directly, so no PM. That saves me nearly 20k a year in Stamford. I've sold Ansonia, New Haven and Hartford; but keeping the Bridgeport, CT properties. 

I've tried to management with our small team, but since they are in downtown Bridgeport, it's a struggle. One of our team members had a gun pulled on him, and I've had to stare down some groups too. The only difference was that I have a legal concealed carry in CT, but my other team members do not want the responsibility of a firearm. I was in the Army for a number of years, so Bridgeport is a cakewalk compared to Iraq. I could sell our Bridgeport properties, they've appreciated around 60%. However, even with the PM in place, they clear a decent profit most months (knock on wood).

What do you guys think? Do you keep any C/D area properties? Or, are they just not worth the headaches even though there's more profit in those units? Or, do you strictly stick with A/B areas? 

[Shirley R.]

I'm with @Michael Noto. I've been in Hartford for only a year now, even less, but can tell you that my goal further down the line is to get out of it and into better areas. And I didn't even have as gun in my face (yet...).

It's just the constant maintenance of the properties and the tenants erodes the bottom line in reality, despite how lucrative it seems on paper.