Updated over 12 years ago on . Most recent reply
Buying a ghetto-adjacent property
Hi all, new to the forum but have been reading for a few weeks. I'm finding out that to-date I haven't been treating my triplex rental as the business that it is. I haven't been stiffed on rent or had any destruction yet (only 9 months in to having 2 apts rented) but that is based more on luck than any good work I did in tenant selection.
On to the topic at hand:
I've found a 9k house that is within a few miles of the two I currently own though it is on the "wrong side of the tracks". This is an older (age of occupant) neighborhood that backs up to a lower income neighborhood (though the homes in this area are well kept and crime isn't as bad here as it is in some parts of Birmingham).
Zillow and Rentometer support rents in the $400 to $450/month for this property. I haven't seen the inside of the unit but if I assume 6-7k to make rent ready (carpet, paint, work on the bathroom and kitchen, misc), $300/yr actual property taxes, and an estimated $100/mo for a fire policy would this be a property that you would purchase if you could buy/fix in cash? Would it be worth the headache of managing a C or D (not sure if there are hard cuts on classes) property with a high percentage return but low real monthly income?