Nothing 'on the fringe' of an undesirable neighborhood.5.

While that price tag is appealing, the trade off is often a lot of tenancy issues (including the whole Section 8 hassle with housing authorities), huge rehab requirements because of long-deferred maintenance etc,  as well as lost equity because homes in these areas are unlikely to sell for any substantial amount no matter what condition they are in, simply due to the neighborhood - so any refurb equity is basically cancelled out by the undesirable location and the condition of surrounding properties, crime rate, etc.If you do decide to go the TK route, I have a lot more to say about the questions you should be asking of any provider you consider (and if you look at any of my past posts, I harp on this point quite a bit).

There is always a 'range' of rental prices and the more you can keep your property at the top of that range, the more likely you are to have tenants who don't want to risk losing their place by missing their rent or other undesirable behaviour.

This “fixer” is $150-$200k, and you’re still going to end up with an undesirable property.

(This makes it undesirable to sue you since you have little equity) Once its paid off you might want to do it then.You could add an umbrella insurance policy if you want an other layer of protection.

It will just take 2-4 years of ownership before this fire sale will start, maybe sooner if they get screwed by an undesirable tenant or a few months of vacancy.

With the media casting “Trailer Park Boys” to the unforgettable mobile home park scenes in Eminem’s movie, 8 Mile, most people would never consider putting their time or capital into such an undesirable investment.

If it isn't possible with this home, move on to another.Thanks Brendan...the problem is, being in central NJ, below the $200k is very difficult without going multiple tenants, undesirables, etc.

What is your guys 2 cents on investing in multi-family homes in undesirable areas?

In these locations, you may not be able to increase the rent fast enough to keep pace with inflation, or you may end up with undesirable tenants.