Buying a house in a "rough" neighborhood? (Newark, Jersey City)

[George B.]

Hello again everyone,

I'm trying to make my first home purchase. Of course, my ambition to become a serious investor makes me see opportunity everywhere and I find myself wanting to buy every opportunity I see, but I simply can't afford it yet. As someone has said once before, I have "wine tastes and beer pockets."

But as I consider my circumstances, I still want to buy SOMETHING. My rent for a 1-bedroom is $1150 a month, which is really low for my area (New York City/North-eastern New Jersey), especially considering that I locked in that rate 2 years ago. I feel like I'm throwing away money when I could be putting it towards a solid purchase.

As I consider what I can buy, it seems like I'm limited to "rough" parts of Newark and Jersey City, as they still provide a reasonable commute to Manhattan (where I work) and seem like my best shot at something affordable.

My question is, would this be a prudent investment? For example, if I bought a 2-family as an owner-occupant, or even a single family or condo in one of these areas, does the investment outweigh the potential downsides? Obviously a portion of this discussion is personal, but I'm looking for guidance from the people that know best. Please share your thoughts. Thank you in advance!