Where do most people draw the line when it comes to investing in rougher neighborhoods

[Max Shepherdson]

Hi guys,

New investor here and just wanted to ask a quick question about what your rules are when it comes to investing in low income neighborhoods?

Ive been doing some research and ive been told that some investors wont go below 50% of the median home value of that city.

So if you had a $300k median home value for a certain city, then most people would only go down to $150k areas as generally they find any lower than that to be war zones.

Just throwing it out there to see what other seasoned investors advise! thanks in advance:)

[Jason C.]

Actually, if you are investing for rentals it is better to stay at or below the median. Not at or above the median. People that are able to afford higher end properties are less likely to make long term tenants.

Flips may be a different story.