I'm looking to buy and hold in a lower middle class neighborhood, but I know there are a few that are very bad. I think Sunrise and Indian Creek are two, but I was wondering where else is a no-go. I'm definitely willing to invest in a place that isn't too great, but what are the subdivisions that you wouldn't ever go into?
Tim hope your doing well. This is not a direct response to your question but I hope this suggestion helps. I have worked with a handful of clients who have done business in both areas you mentioned above and who continue to do well in both areas. You can buy right and push your returns on your monthly rents. I'm fortunate to work with seasoned and very experienced buy and hold investors and from their success have learned that regardless of location one of the most vital parts to their risk management is short/long term management strategies and policies. Just to be clear I am not implying you do not already have a good management system in place, but I would hate to see anyone pass up a good buy/return over naysayers. Best of luck on your endeavor Tim!
Thanks for the help @Paul James ! I agree that there is opportunity in every neighborhood with the right plan in place, I would just like to enter into those type of challenges with some experience under my belt. Correct me if I'm wrong, but neighborhoods like that usually cash flow well with not as much equity capture correct? I know it's a generalization, but thats just the general premise I seem to see, knowing that every deal is unique.
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