I'm thinking about buying a home in a bad neighborhood. I want to pay $12,000 for a 3 story in fair condition. I then plan on doing a lease option to someone. It does need a little fix up. I'm just wondering about the bad neighborhood if it will be a cash cow for me.
2007-06-25 10:18:46 · 5 answers · asked by Ted (Canton,OH) 2 in Business & Finance ➔ Renting & Real Estate
Won't be much of a cash cow if it is a bad neighborhood. You'll have problems getting a good renter, and those that typically look to rent in a bad neighborhood expect to pay lot less and aren't always the best bet as to tenants.
If you plan to do a lease to own, you will have a hard time getting anyone with credible credit to buy a place in a bad neighborhood.
2007-06-25 10:23:06 · answer #1 · answered by Mike Frisbee 6 · 2⤊ 0⤋
It depends on what kind of bad neighborhood it is. Is it bad because of poverty, other vacant buildings, low income, low tenancy, low prices, theft, drugs, violence?
That will determine the investment. It doesn't matter how cheap it is if you can't sell it or rent it out. If the cash doesn't flow it's a no go.
2007-06-25 17:25:03 · answer #2 · answered by Rothwyn 4 · 0⤊ 0⤋
I had some properties in the ........I'd rather not say. I was called out to repair drive by bullet holes, stolen water heaters, fix and replace aluminum windows, all of them in one apartment. Copper water pipes and entire wiring for one unit.. All the appliances in another one. Fixtures, you name it, we did it.
I got tired of hiring a rent a cop to watch my tools and truck and so did a lot of competitors.
You can have them but, be prepared to do a lot of your own work. I know of only a few people that will work for anyone in these areas and when they learn what it's all about, they leave too.
2007-06-26 08:31:17 · answer #3 · answered by cowboydoc 7 · 0⤊ 0⤋
As a native ohioan, I would never invest in a town like Canton, Akron, or Youngstown. Those towns are dead. However if you are looking to invest in real estate such as apartments or condo conversions, shoot me an email and I can give a couple other options than Canton, Ohio.
2007-06-25 19:25:57 · answer #4 · answered by jameson_liang 3 · 1⤊ 0⤋
You end up having to rent to sketchy shady people. And I'm not talking about colour case there are a lot of trashy white people too.
But once again, the people you will be renting to with likely be on drugs or wellfair and they are usually unreliable when it comes to paying rent. Esp. paying it on time when it's due.
2007-06-25 17:22:47 · answer #5 · answered by AviTech 3 · 0⤊ 0⤋