How to invest in problem neighborhoods and make it profitable?
I grew up in an A/B suburb of Pittsburgh and am very familiar with the area. There is one old mining neighborhood with a bunch of duplexes that's in an incredible location. It's right on the trolley line which runs in to town. Close to some pretty unbelievable stores and malls that service the incredibly wealthy communities just down the road. It's right off a major road that runs up to the city as well. Couldn't be a better location. These few streets (maybe 50 properties) though are by far the worst in a five mile radius.
I do a fair amount of direct mail marketing and have had a pretty shocking amount of calls from people in this neighborhood when they get the flyers. Responses are from owner-occupiers and landlords alike. I always go to look when I receive a call, but almost every duplex I've looked at is in such bad shape, the only option in my mind is demolishing and starting over. I'm talking foundations that are so messed up, you're surprised the house is still standing. Holes in the roof that look like the house was hit by an asteroid. Smells that are beyond description. Unfortunately though, I can't seem to find a way to even get close to making the numbers work to buy one of these properties.
The town is a fairly well-to-do suburb and this is one of only two problem areas in the municipality. My question though to the Bigger Pockets community is: where do you even start with a neighborhood like this? As it stands, it's not profitable to buy, even if you're just going to demolish and sell off the land. It is my home town and I'd like to be able to do something and make it at least a little profitable, just not sure what. Does anyone have any experience in neighborhood revitalization and have any ideas of where to start?