Posted by Bill on November 16, 2000 at 08:04:54:
I would not buy and hold in borderline neighborhoods UNLESS there was a very positive indication that the neighborhood was improving. Just my feeling, my risk tolerance is too low to chance it if the area is not getting better. What happens to your equity and ability to sell if the area gets worse? I would sell, get my profits and probably sell the note that I created to another investor that was willing to take the risk. Then I would go to the next deal without worries.
Borderline neighborhoods? - Posted by J. Cummings
Posted by J. Cummings on November 15, 2000 at 21:02:13:
Are there any circumstances in which you might consider buying a duplex from a motivated seller in a “questionable” neighborhood, but at a fantastically low price?
I’m finding duplexes everywhere in my area that are dirt cheap and I know there must be a smart way to profit on these, but I could really use some suggestions?
Thanks a lot!
Re: Borderline neighborhoods? - Posted by Paul_MA
Posted by Paul_MA on November 15, 2000 at 21:20:37:
Nothing wrong with questionable neighborhood. You may find you like them. I find in the poorer neighborhoods that many of the homeowners have pride and dignity in their property.
If the entire neighborhood is rental property, I would take a second look on how I get into and out of the deal.
Perhaps a quick paint job and flip? Sell with terms to an owner occupant?
Hope this helps
Re: Borderline neighborhoods? - Posted by J. Cummings
Posted by J. Cummings on November 16, 2000 at 07:16:13:
I was thinking of selling to the owner occupant on terms. You’re right about the “pride and dignity” part, too.
Tell you the truth, I was shocked by the number of cheap duplexes in my area (Buffalo, NY). Some people are almost giving them away! I know I have to do my home work, have an inspection, etc… to make sure I’m not inheriting someone elses problem. But with the dozens of these properties available, at least a few should be OK.
By the way, would you ever consider this kind of property a buy & hold?
Thanks a lot for your help!