Accountant · Madison WI · Member since 2018 · 17 posts · 11 votes
Hey BP,
We have a deal brought to us. 112 units in a low C to D neighborhood. The area has had new build homes going up but the area is still has a stigma. When you mention the name of the road the properties are on people some what cringe.
Myself and my partner drove by the location and it was not all that bad to be honest. Would I love there, no but I do not feel unsafe.
There was a thought to work with the city to get the name of the road and neighborhood changed as we would be cleaning up the area and could help allocate the stigma quicker.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
5y
I'd pass unless you have deep pockets.
It is much easier to change a bad property in a good neighborhood. Changing a bad property and a bad neighborhood requires that lots of investment is going in at the same time the city is helping you clean out the bad elements. Too many moving parts for me.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
5y
Personally, I wouldn't do it. You can change the property, but you can't change the area. However there are others who have had success here. Keys are getting the property at a good price and huge reserves. It would be very easy to overpay, particularly in the current climate.
You should expect:
- Significant Deferred maintenance. Burst pipes, HVAC repairs & replacements, appliances, pests, etc. Figure the last owner probably wasn't doing a lot of basic things.
- High delinquency of the current tenant base
- Limited selection of property managers
That has been our experience. It is great to be a provider of safe, affordable housing, but doing so also comes with difficulties.