Without a business, you might not care if your below a certain Dollar level or asset types that don’t deteriorate.

The problem with the Memphis properties is those types of houses and neighborhoods will deteriorate into “C” class properties.  

There is a vacant property in my neighborhood I have been watching and it looks like it was foreclosed on, went to sheriff sale and was bought back by the bank.Now it is just sitting there deteriorating.

Anyone's guess, but I don't see demand for living in America deteriorating.

The borrowers also have less incentive to maintain the property, which can deteriorate faster than you expect.We've done hundreds of notes, and while it’s true that being underwater alone isn’t always the trigger for default, we’ve consistently seen better overall returns — and smoother exits — on loans where the borrower has some equity or a strong incentive to stay.

In the spirit of demography, there are plenty of resources for research on the effects of neighborhood revitalization, such as this list on the pros and cons, this study on racial disparities across different gentrifying neighborhoods, and this article on how gentrification can be seen as a visible reaction to neglected neighborhoods finally receiving the investment other neighborhoods have gotten all along (see the images below).With this disclaimer out of the way, I’d like to bring the focus back to how mom-and-pop investors can identify up-and-coming neighborhoods to invest in, which usually involves purchasing a property that has been neglected in its upkeep, and add value to it (and the surrounding neighborhood) by repairing its deterioration and making the property livable and comfortable for its residents.What Up-and-Coming Neighborhoods Have In CommonLuckily, a lot of research has already been conducted on this topic.

You’ll also need to consider the risk of market changes—if the tenant backs out and the market has cooled or the property has deteriorated, you may end up with a home that’s harder to sell than before.To protect yourself, make sure the lease-option or lease-purchase agreement is legally sound and state-specific, clearly defines default terms, outlines non-refundable option fees (if that’s your intent), and distinguishes between rent and purchase-related payments.

While we would be OK on cap gains tax, this would create a recurring tax expense increase which would deteriorate a long term investment in this property.

In Texas, normal wear and tear refers to expected deterioration from ordinary use (e.g., minor scuffs), while damages result from negligence or misuse.

Subsequent images on the site show the property’s progressive deterioration over the years.Another property, a three-story rowhouse at 915 Dauphin St. near the Fairhill neighborhood, underwent a similar decline: Seven months after its November 2016 acquisition by DDH, it too had windows and doors.