High crime areas worth it?

Question

Wanting to get started buying my own properties. Properties in my range are all in high crime areas.. worth it to get started there or bad idea?

Account Closed · Answer

Save money and buy in a more decent area.  It isn’t that you can’t it’s that it takes a special type of landlord to manage and deal with that type of property.

Maybe you have it, maybe you don’t.  But if you can ONLY afford cheap high crime I’d venture you don’t... no offense.

Sandy Gabin · Answer

Do you know if the area falls into class C or class D? It all depends, my property falls in to a class C. Crime rate is high.  But at least where my property is mostly all other landlords live in the neighborhood.  I have very nice neighbors and have great tenants!

Matthew Paul · Answer

Walk around on a warm Friday night , if you are still alive by the morning you might be in an ok area . If you hear gunshots and that queesy feeling in your gut , Listen to your gut

Taylor L. · Answer

Find a way to get more money and buy in a better area. Maybe you need a partner, investor, or lender. The money is out there.

Sandy Gabin · Answer

Commercial real estate is categorized into four classes, depending on function: office, industrial, multifamily, and retail. Individual spaces are also categorized. Office space, for example, is characterized as class A, class B or class C.

I added in the class D because I read it just recently on the internet.

Edward L lauckern · Answer

No, high likely hood you'll be throwing your money away. Those areas tend to draw the worst tenants avalible. Then when you figure out you made big a mistake hard to find a buyer to get out of the property. Not sure what your price point is but I would save up some more money or look outside of your area all together

Sandy Gabin · Answer

• Class A represents the best buildings in terms of aesthetics, age, quality of infrastructure, and location.
• Class B buildings are usually older and not as competitive—price-wise—as Class A buildings. Investors often target these buildings for restoration.
• Class C buildings are the oldest, usually over 20 years of age, located in less attractive areas, and need for maintenance.
• Then there is a Class D-where the house is in a mediocre area.

Hope this helps!

Marco Morkous · Answer

@Sandy Gabin how can I figure out the class a property falls into?

High crime areas worth it?

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