Urban w/ Language Barrier vs Rural w/ Heroin Epidemic

Urban w/ Language Barrier vs Rural w/ Heroin Epidemic

Cincinnati, OH · Member since 2016 · 12 posts · 2 votes

Hello all!  I'll try to make this quick.  In perusing the local listings for fourplexes, I've found a couple worth taking a second look at.  Each has their pros and cons, but both are in the same price/cashflow range and are fully occupied ATM.  The main concerns I have are as follows.  

Quad #1 is in the city in a so-so neighborhood, older but half-renovated with solid curb-appeal, and has several tenants that are Spanish speaking only.  Quad #2 is two blocks from the sheriff's office in the heart of a rural town, is a newer building that also has great curb appeal (though with fewer updates), and is in the middle of a community that sadly is currently battling a heroin epidemic.  

The small town of Quad #2 is a nice little town with a lot of solid folks, and it's right on the river by a marina, but news reports are definitely concerning with the amount of intimidation/violence occurring in various pockets.  The language barrier of Quad #1 is definitely a concern as I don't think "Una cerveza mas?" will be very helpful in collecting rent (is it safe to assume that prop mgmt companies would have bilingual folks?).  Which property would all you wonderfully seasoned BP vets be more concerned with?  

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Investor · Northern California · Member since 2015 · 126 posts · 40 votes
10y

Welcome Brett!  That is an interesting call...but I will give you my gut response.  I would go with the city, largely do to better appreciation in the long run.  Also, a rural community may not make its way out of the epidemic...and it could be difficult to sell in the future.  Language barriers can always be overcome with a little help from friends or a college student...I wouldn't consider that a deterrent at all. Good luck and let me know what you decide!

All the best,

Lauren Heart

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  • Investor · Northern California · Member since 2015 · 126 posts · 40 votes
    10y

    Welcome Brett!  That is an interesting call...but I will give you my gut response.  I would go with the city, largely do to better appreciation in the long run.  Also, a rural community may not make its way out of the epidemic...and it could be difficult to sell in the future.  Language barriers can always be overcome with a little help from friends or a college student...I wouldn't consider that a deterrent at all. Good luck and let me know what you decide!

    All the best,

    Lauren Heart

  • Investor · Plano, TX · Member since 2014 · 188 posts · 149 votes
    10y

    @Brett Woodall, I'm a terrible speculator and I suck at predicting. But what I'm can control on my own is due diligence. The more due diligence I do, the better decisions I make. My recommendation is do some grass roots due-diligence. Suggestions

    - Pre-advertise both properties for rent and talk to potential tenants. Use a "white lie" that you have the property is empty but going through showing. 

    - Visit the local sheriff's office and get feedback on the neighborhoods

    - Walk the neighborhood and talk to folks and ask them about the neighborhood and see if they are happy and they plan to stick around. You don't wanna buy a house that's in a down-market, where people are fleeing. Could be one of the reason why the current owner want to unload 

  • Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
    10y
    Originally posted by @Lauren Heart:

    Welcome Brett!  That is an interesting call...but I will give you my gut response.  I would go with the city, largely do to better appreciation in the long run.  Also, a rural community may not make its way out of the epidemic...and it could be difficult to sell in the future.  Language barriers can always be overcome with a little help from friends or a college student...I wouldn't consider that a deterrent at all. Good luck and let me know what you decide!

    All the best,

    Lauren Heart

     Agreed.   

  • Rental Property Investor · Westminster, CO · Member since 2015 · 82 posts · 30 votes
    10y

    Quad 1 in a heart beat. A little elbow grease to learn a few phrases and the language barrier goes away. Your attempt at Spanish will introduce you to a lot of people that live there that will translate for you when you can't middle through with "Spanglish".  Hard working people that don't speak English are always a win.  My tenants do so much work for me, paid through 1099-Misc or rent concessions, because of pride of residency and they stay for years!

  • Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Brett Woodall  I agree with the city property.  You have a much larger tenant base there.  Although, I would make sure to keep my finger on the pulse of the surrounding area, just in case the neighborhood starts going downhill and you need to exit.  But, being in Texas, we deal with the language thing all the time.  You would be surprised how easy it really is to work through.  Heck...there are even apps you can install that will live translate for you!

  • Cincinnati, OH · Member since 2016 · 12 posts · 2 votes
    10y

    Thanks for the input everybody! Sounds like in this scenario that Quad #1 is the clear winner, which is the way I was leaning as well anyway. I'm probably going to go take a look at it on Saturday, but I don't think I'm mature enough yet in my REI journey to make this large of a purchase just yet. You never know though, gotta start somewhere! Thanks again BP community!

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