has anyone ever owned rental property in a lower income area?

Question

I am searching for investment properties. Where I currently live there are several inexpensive homes that I might consider buying as investment property to either buy and rent, or buy, fix up and sell. However, these homes are, in my opinion, in a less desirable part of town. Has anyone ever bought a home in a less desirable location and used it as rental property, or bought, fixed it up, then sold it? What was it like renting to individuals who might not be able to afford an expensive rent? Good or bad experience?

My opinion is that even though one might be able to afford an expensive house, they have to live somewhere.......

Thanks.

Answer 1

I personally have owned rental property in lower income areas. One major benefit of owning property in these areas is your return. The houses are cheap, but you can still get a decent amount of rent for them.

For example, if you buy a rental house in a more expensive area, you will be lucky to get monthly rent that covers the mortgage. If you buy a rental home in a poorer area, you can usually rent it out and cover the mortgage payment and some extra in your pocket.

However, you need to keep on top of them to get your rent every month. Just make sure you screen them well and you will be fine.

Another good idea that works in low income area is to rent to section 8 people. This way the government pay you the rent each month.

Answer 2

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Answer 3

Sorry I can't cheer you up, I had to choose between work and school just to keep up the rent, so now I feel stuck paying rent without furthering my education. I didn't have anyone to help me in anyway because I was in fostercare and once you are old enough, you are out. Owning a home is simply out of the question for anyone who has to work and make it on their own unless they are willing to put everything on the line in the lending lottery or buy a 'fixer-upper" that may never be 'fixed' due to lack of funds. Add in taxes and all the other costs of home ownership, and its no wonder a lot of people carry around massive debt on their credit cards and elsewhere. Many lenders take advantage by giving you easy rates that change to extremely high in a few years, causing many to lose their homes and renting is just a money pit. Even two incomes can't keep up, as you can see from the real estate downturn many states are having right now due to those adjusting rates. I just feel like you have to have had well-off parents or a really high-paying job to keep up. Or started saving every penny you could from the moment you were legal to work while living at home rent-free until you were 30, lol.

Answer 4

Depends on what you mean by 'less desirable'. That's a pretty vague term. I have a friend who has investments in inner city Milwaukee. He collects rents weekly, never after dark, and carries a handgun for personal safety. Yes, he makes a decent profit on these units, but it's not easy dealing with certain types of tenants who rent in certain areas.