Rehab neighboorhoods a good place to start? (Portland, OR)

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I originally was going to PM this to EricFoster, as he is one of the more active investors in this area, but decided maybe to post it here to get any other investors thoughts (Portland area or not). Basically it was an idea I had to generate some capital by buying something that will appreciate rapidly over the next 3-5 years. Any advice is welcome. Also let me know if this is the wrong forum to post this under.

Message below:

"I was hoping to get into REI by purchasing house that I can sell in 3-5 years or use equity from to fund future investments. The area I had my eye on was the Lents renewal area along I -205.

Link the PDC site regarding the project:
http://www.pdc.us/ura/lents.asp

Do you know anything about this area? Personally, I see it as a great potential to get into a rehabilitation project (owner-occupied) as a first time investor. There are even programs the PDC is offering to help first time home buyers in this area!

This is just an example of one I found on craigslist:
http://portland.craigslist.org/mlt/rfs/547708830.html

Not much to look at but it has potential ( adding a garage or a little picket fence could really increase it's curb appeal ). I drove through the area and there a tons of little rehabs like this.

Any thoughts?"