Have you personally had success investing in a property that is 100ft from a school and in a tough neighborhood? For example, tenants can watch their kids walk to school from door to door.I say tough neighborhood because the city is full of crime, higher unemployment, some blight, and overall nothing of significance taking place in regards to an economical comeback. I have an eye on a few small homes (900sq ft) that are across the street from an elementary school. I can pick these up at very good price and possibly have a payback in 1-2 years.
Since these properties are in reasonable condition and so close to a school I'm willing to chance it on a smaller investment with great return. Have you personally had success investing in properties extremely close to a school? What was your success based on in these "tough neighborhoods"? I would love to hear your comments.
Homes in this area rent between $700-$900/month and have market values between $20-35K.
Income levels are below median household income.
50% African American/ 50% Caucasian.
Schools are poorly rated
People still live in this area!
I have not invested right next to a school. But I would think it would have little effect on the property value, tenant base, etc. If it’s a high crime/blighted area that isn’t going to change regardless. But I suppose it beats buying a house next to the local drug house. Regardless, I’d just check the block you are looking to invest in.
Agree that you should look at the other nearby properties. If yours will be the best on the block it will be tough. If it is middle of the road and you have an appetite to rent in the low income market, it could be a good fit. It will likely be a great cash flow play.
One of our properties is very close to a failing school, it is a low income area. It is not a war zone, but is the least desirable neighborhood for sure. We have had several tenants, and only one has been attracted and thrilled to be close to the school. We do market it that way, as it is very possible to watch your children get safely to school. Just realize that the property itself is what will attract more applicants.
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