I am fairly new in the game.
Investing in a low-income high-crime neighborhood is out of my comfort zone, but being in the biggerpockets community, i gather the impression that a lot of good deals exist in C neighborhoods.
That said, specifically, what do you guys think of the Cashmere Gardens area?
Mostly small houses built around 1945, block and beam foundation.
Surveying the area, my impression was that it was cleaner and more well-maintained than I expected.The signs for rental vacancies posted around the area emphasized on "no credit needed". I generally had a positive feeling in the area.
I would categorize Kashmere Gardens as a D, not a C. I haven't been over there in a long time so I'm going mainly based off of memory and reputation but I'd be wary of investing there if you're new to this. You're chasing cash flow without realizing that expenses and delinquencies will eat you up. As long as you understand what you're getting into, you can make money. Most people will underestimate and will lose out.
Thanks Michael! Perhaps I will approach this adventure at a later stage.
On the same thought, am I right in assuming that the typical tenant in this area may not have bank accounts, no SSN.. the landlord signs up for the utilities? I have heard this demographic is a reliable tenant. Thought?
How does one get data of the demographics of the area?
I'm not sure how you can have no SSN unless you mean they are illegal aliens, in which case the demographic for Kashmere Gardens is mainly black, not hispanic. But generally you're right about the other parts - they don't have bank accounts nor credit. That's why all bills paid properties can be popular because it doesn't force them to go get utilities on their owns which would likely require huge deposits.
And no, I would not say that this demographic is reliable at all. What about having no bank account, no credit, no SSN, etc would make you think so?
I buy access to CoStar so use the demographics info from there. There are other services out there. You can get some demographic info from city-data.com too.
I think Kashmere Gardens is shifting towards more Hispanic - according to this - but yes, I realize now, it is majority African-American.
I never realized all-bills paid properties targeted the undocumented demographic. Makes sense!
Thanks for the sources - I am going to check them out.
Do you have a source to get rental-evictions data for Harris/Fort Bend counties?
Also, how would you rate Sharpstown?
That article is 12 years old and my recent data still shows 75% black. So not sure how much of a shift it has been.
I do not have rental-evictions data as I don't deal with any of that, my property management company does.
Sharpstown used to be good, then it was down, and now it's on the up again I think. That's just me speaking of the last 30-40 years of the area as I know/remember it. But right now it's trending up.
If you are interested in targeting class D areas then I suggest a good property management company to do the heavy work. Sharpstown has a ways to go but overall it's trending up slowly.
If you carefully tenant screen and strictly stick to certain qualifying criteria you can find good tenants. However, that comes with experience. But be prepared for the worse.
Agree with @Michael Dang about Kashmere Gardens being D... (To Me)
1) D Class cant be managed by all property management... you need you make your hands dirty if you get into that area.
2) Margin needs to be HUGE to have rooms for repair after every tenant turnaround
3) Some People made (yup) and still are making a TON of money from that neighborhood but they have been playing in that zone for a long time
4) A lot of people feel comfortable with spending less than 100K in any Houston area which makes very tough to get a good deal in Kashmere Gardens ..
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