What areas of real estate are you avoiding?

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What areas of real estate are you avoiding?

Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes

As the economy continues to grow and the real estate market grows stronger I have began seeking out other aspects of real estate. There are many aspects that investors stay away from and I am trying to identify them.

Which areas do you avoid and why?

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Larry Turowski
Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes
10y

Really low end stuff.  Not for me.  And speculation.

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  • Larry Turowski
    Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Really low end stuff.  Not for me.  And speculation.

    2Reply
  • Jennifer Lee
    Real Estate Broker · Gibsonia, PA · Member since 2013 · 828 posts · 260 votes
    10y

    im with Larry, lower end, low income, section 8, and speculation.

    location location location.

    1Reply
  • Tim S.
    Property Manager · Evans, GA · Member since 2016 · 29 posts · 16 votes
    10y

    I posted about low income/section 8 investing yesterday cause I'm looking to venture into that area for cash flow only. 

    However, your concerns are valid.  If you're looking for appreciation or any sort of resale value, STAY AWAY FROM LOW INCOME NEIGHBORHOODS! Lol

    1Reply
  • Ryan Mullin
    Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes
    10y

    Section 8 is my least favorite thing ever.  

    I love cheap houses.  Im looking to pick up a few under 30k houses to add to my personal portfolio here in the next few months. But just because they are cheap doesn't mean they will be ghetto.  Certainly won't be section 8.  

    Im NOT buying any more commercial properties.  Love the idea of it but its a different animal. 

    1Reply
  • Bhekizwe M.
    Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    10y

    The really low end stuff

    1Reply
  • James DeRoest
    Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
    10y

    War zones.

    1Reply
  • Sean Tracey
    Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Personally, I'm avoiding speculating on appreciation. I'm in NY, and it may just be my ignorance talking, but I don't know how anyone can cashflow with buy and hold here. Timing any market, whether it's stocks or RE is not something I'm willing to bet on. 

    1Reply
  • Adam BartomeoBusiness Member
    OP
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    @Sean Tracey

    I grew up in queens and left at 20 when I joined the army.

    You can cashflow on any property but you will have to put more money down. So, you Cash on cash return will be lower. 

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
    WebsiteView Page
    0Reply
  • Sean Tracey
    Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y
    Originally posted by @Adam Bartomeo:

    @Sean Tracey

    I grew up in queens and left at 20 when I joined the army.

    You can cashflow on any property but you will have to put more money down. So, you Cash on cash return will be lower.

    As of right now, the amount of capital I'm willing to invest in Real Estate probably won't be enough to get me anything in Queens. There might be diamonds in the rough, but I'm going to ease into Real Estate, and a major fixer-upper or property in a class D-neighborhood won't be where I begin my journey. I'd also like to use as much leverage as possible, and hope to get a really good COC return.

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