#AskBP 019: If It’s All I Can Afford, Should I Invest in War Zone Real Estate?

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In many parts of the world, the only affordable real estate is in low-income, possibly-dangerous neighborhoods. When first getting started, is it okay to invest in these neighborhoods? The answer might not be as black and white as you think, as you’ll hear in today’s episode of The #AskBP Podcast with host Brandon Turner.

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About Author

Brandon Turner

Brandon Turner (G+ | Twitter) spends a lot of time on BiggerPockets.com. Like... seriously... a lot. Oh, and he is also an active real estate investor, entrepreneur, traveler, third-person speaker, husband, and author of "The Book on Investing in Real Estate with No (and Low) Money Down", and "The Book on Rental Property Investing" which you should probably read if you want to do more deals.

3 Comments

  1. Deshan Kennedy

    Awesome quote of the day!

    IMO, people seem to be afraid of leveraging the properties so they think if they have $15k then that’s all they can afford to purchase in REI but as you said Brandon, you have to sharpen your skills in order to learn more of how to get what you really want instead of settling for what you think you can afford.

  2. Lisa Phillips

    This is an interesting question! Good Answer Brandon! I am all about showing people how to invest in lower income neighborhoods, but the first thing I SAY Is there is a difference between a warzone vs a working class neighborhoods. Honestly, its more about
    1.) What are rents – is it a war zone AND the rent is low – NO, don’t do it – not worth it
    2.) Is it a “warzone” because of one shooting last year – well, depending on other crime, maybe I would if that’s the only REAL crime. Is there a shooting every 2 months – NO – not worth it.
    3.) Is it a warzone and there is a lot of theft – Sure, theft can be worked around with security doors, etc
    4.) Is it a warzone with drugs and homicides? NO – again, too much to deal with when there is another community 30 minutes away that dont have these headaches for the same sub30k property.

    I mean, there are other nuances, but each of these questions matter, I just like showing people to look at ALL of these facets, not just one blanket statement. That’s not how I make my money, leastwise, not being able to read the areas. Sorry so long, but I teach other investors HOW to go into those neighborhoods, so this question was one I had to answer!

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