Top rental markets are also the most dangerous cities?

[Wayne Tam]

Just came across this list of most dangerous cities in America: Forbes 10 Most Dangerous US Cities and to my surprise many of the top rental markets spoke of by the other members are on the list!  Detroit, St Louis, Memphis, Birmingham, Atlanta, Baltimore....is this why the saying higher risk=higher return?  I've been reading on investing in Memphis and now I'm not sure if that's a good idea....can investors from these areas please chip in?

[Chris Clothier]

Originally posted by @Brie Schmidt:

I am from Chicago, which is usually on these lists.  I read a stat awhile ago that said something like "80% of our shootings occur in 3 neighborhoods which make up less than 10% of our city" so to me it is about knowing your neighborhoods and comfort level.  

Brie - hope you don't mind me copying your post, but it illustrated a point I wanted to make so I was going to build on it!  

The biggest problem with some of the comments on this post and even with the people bashing on the statement from Ali is that when you simply say "Detroit" is too dangerous to invest that is way too much of a 30,000 ft. view.  Ali is a hipster and someone may not like the use of the word "rowdy", but her comments make sense.  The parts of Detroit where she has visited she felt safe and would invest.  Crime stats are just that, one snapshot in a much bigger picture and rampant crime in parts of cities gets lumped into the whole.  Doesn't mean the whole city is a dumpster fire!

When someone tells me they heard that Memphis is a great city to invest and they are ready to get started I always cringe.  They send me listings they found online with zip codes and neighborhoods that I have no interest even driving through in the day.  Because of crime, drugs, decay...whatever the reason, I have no business there and so therefore do not even visit those parts of the city.  SO I always tell people that "MEMPHIS" - just mentioned without any other pre-qualifiers - just "Memphis"is not a great place to invest.  Memphis has many great neighborhoods and several great teams you can invest and do very well with!  You can make money and lose money very easily in Memphis just like you can in any other city...such as Detroit.  It comes down to team you put in place.

Crime has much more to do with neighborhoods to avoid than it does cities to avoid.  I think it takes a 300 ft view to know the difference and where to invest in my opinion.