Anyone have opinion/ experience renting in areas not so popular ?

Question

I am currently looking to purchase out side of where I live and have seen a lot of really cheap places. Of course when you look up the area it is not a great area and mostly bad comments about the area. Just wondering if anyone has had any experience and luck investing in these areas ? Seems like it would be more of a pain than it’s worth but the values are so low I figured maybe someone had an opinion on the topic, that could help !  Thank you

Patricia Steiner · Answer

There are three things that matter in real estate:  location, location, location.  It determines rental price, occupancy/vacancy, valuation, appreciation, marketability.

So, if a home in a undesirable location is selling for the price of a bag of Skittles, is that a good investment? There are a whole lot of people who thought it was worth the risk and here's the bottom line:

LIPSTICK ON A PIG IS STILL A PIG...

Nathan Gesner · Answer

Buying something just because it's inexpensive doesn't mean it will make you more money or save you more money. Odds are, these cheap places are cheap because the market sucks. There's a good chance it will cost you more in the long run.

Save up and buy in a B-class or C-class community with a long, stable history.

Patricia Steiner · Answer

We do all have to start somewhere - but somewhere good so that we have enough ROI to fuel the next deal.  Please rethink this...you won't need luck if you let the market drive your decision.  It's not about "getting in the game." It's about "winning it."

Account Closed · Answer

@Dennis M.

This is the Great advise I was looking for, Thank you

Kyle Mitchell · Answer

@Ashley Kitchen . The saying is never buy in the hood and I believe that to be true.  I made this mistake on a few single family homes a few years ago when I was investing in that asset class and they have turned out to be a huge hassle and burden.  Often times these properties look great on paper but in the real world they just don't pan out.  You are usually looking at a best case scenario with these deals on paper.  Be careful where you buy and make sure that all the data supports a thriving market and m

Nathan Gesner · Answer

I wrote a post by that title to chronicle a hoarder house I bought.

You have to remember people have different levels of experience and skills. I can manage a D-class rental and make money but it could destroy a novice.

Dennis M. · Answer

I buy in undesirable areas sometimes and frankly I don’t give a crap about location if the numbers work I will find a way to market it and get tenants in the good or bad times . One way or another I fill vacancy’s .desire is relative . Many times I will do a showing and  her surprised how some folks get excited over a dumpy cheap rental but I guess some things are best left unsaid . One mans junk is another’s treasure

Katherine Earle · Answer

As I look for my first property and my partner and I have limited cash, I am thinking the same thing. My thoughts are to talk to local agents and PMs in the area to see about comps, vacancy rates, etc. Now if you find that $30k house that only needs paint and carpet and basic landscaping, you can plug in numbers that might reflect the actual value to see if it really is a decent deal or not. I'm still new myself. So take my thoughts for what they are worth, but we all have to start somewhere. Good luck!

Anyone have opinion/ experience renting in areas not so popular ?

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