Investing in Low Income Areas

[Precious Thompson]

Should a new investor start off buying properties in low income areas?

[David Lee]

I think that a new investor can invest in low income areas. There are some things that you need to watch out for. Low income areas can be cash cows because you can get in to the usually pretty cheap and if you just use the extra cash flow to pay it down. One thing you need to be sure of that it's just a low income not a war zone. If it is a war zone you will have a hard time being able to rent it out or sell it which ever you are doing. Check out sub 30k property's in the search and you can see how some of the other BPers including myself buy some of these properties but remember because they are lower income they are usually harder to manage. Here is the link to sub 30k properties. http://www.biggerpockets.com/forums/61/topics/115738-sub-30k---property-pictures