Posted by evo on August 25, 2002 at 23:37:50:
Thank you. You’ve provided really good information.
Bad Neighborhood - Posted by evo
Posted by evo on August 21, 2002 at 16:45:18:
I am buying my first property. It is in a rough neighborhood. From my calculation it has a good return. Could I get everyone feedback about bad neighborhood? Thanks.
Re: Bad Neighborhood - Posted by Steve Olafson
Posted by Steve Olafson on August 25, 2002 at 22:25:37:
I own 3 apartment buildings. 2 are in great areas and one is in a rough neighborhood. I have found that the managers need to be less refined and thick skinned in the latter. They also need to be forceful but excellent with people skills. I bought into it for the cashflow but found myself wanting to change the mix. I have been evicting people and setting stricter guidlines for residency which has definitely eaten into the bottom line. I expect this to pay off in the long run though because many low income people still want safe clean housing at a reasonable cost. Identifying and chasing out the drug dealers has not been that difficult, just a little uncomfortable. They do not want attention brought on themselves although some have fussed a bit. I have found that most police departments have programs that are geared for multi family housing and are happy to partner up with you if you take real steps.
I would rather have properties good areas but opportunities present themselves all over. Take what will work for you.
Re: Bad Neighborhood - Posted by Jeff M
Posted by Jeff M on August 25, 2002 at 07:30:51:
My simple rule of thumb is that I don’t invest in an area where I would be afraid to do work on the house. A poor neighborhood is very different from a bad neighborhood. I have no problem investing in poor neighborhoods, but refuse to invest in bad neighborhoods.