Your thoughts on what makes a property “in a war zone”.

[Alex R.]

I’ve seen in posts and in books advice to newbie investors to find cheap properties in low income areas, but to stay away from properties “in a war zoneâ€. But these posts and books never quantify what the difference is between a lower income area and “a war zoneâ€. As a newbie myself, I want to be able to recognize the difference. Can you help me understand in a quantifiable way what the differences (and similarities) are between the areas? Does it just boil down to crime rates?

[Mark N.A]

Neighborhoods can drift, either upward or downward.

I've got a couple properties in a border neighborhood that the police and city are targeting both for crime and code enfractions. Many houses are boarded up because the landlords won't meet standards, and soon they will be torn down on the landlord's dime. Looks bad now but once the riffraff are gone it will be a nice family neighborhood again.

You can play a part, too. Screen your tenants well and enforce your lease. I tell my tenants to report any problems in the neighborhood to me and I will pass it on to the cops. My tips have shut down two crack-houses (not counting the tenant I kicked out for selling crack).

What significantly contributes to the problem are SLUM LORDS. I've got one in this neighborhood, a really friendly guy, too! But I've dropped a dime on him and will do it again if needed.

One key to remember is that strong landlords can turn a neighborhood around.