New to the area. Has anyone done any deals in the ghetto??? Any info would be appreciated.
@Caleb Duncan Don't. You will have a very hard time refinancing with banks and finding good tenants. Mostly would be section 8 and they will be very hard on your property. Calculate repair costs at 20% instead of 5%.
With that said, there can be some pretty sweet cash flow in these types of units especially small Multi Fam. Good Luck!
Thanks for the feedback @Daniel Beaulieu. Are you familiar with the Chattanooga area? What price point should I be investigating?
To piggy back on Daniel Beaulieu's point, there are many unseen expenses. Extended vacancies, higher turnover, lower quality tenant pool, etc. We manage in those parts of town here. With prices up across the board I would tread carefully on buying there.
IMHO, I doubt anyone who LIVES in a property would like it to be referred to as being in the "ghetto". Just sayin'.