buying homes in "bad" neighborhoods to rent

[Kellen Bradford]

I see a lot of homes in my city in lower income neighborhoods. 25k-40k homes. I could see myself purchasing 3 homes at least and renting out for $650 each to give me a $1950/month income . Sounds GREAT to me but scared of the idea of running into trouble with tenants in that area. Any advice on how to handle it? 

Or I can buy 2 homes in somewhat better neighborhoods and rent for $750 a month and take the lower income

[Randy E.]

@Kellen Bradford, if you view the target neighborhoods as "bad", you should not invest there.  If you are uncomfortable talking to and being around people in those "bad" neighborhoods, you should not invest there.  If you think most people in those "bad" neighborhoods don't behave the way you think is appropriate, don't invest in those neighborhoods.

Invest in neighborhoods where you feel comfortable.  Invest in neighborhoods where you are happy walking from your prospective rental property to the nearest neighborhood corner store.  Invest in neighborhoods where you would feel comfortable having lunch with the people in that neighborhood.

If you're going to manage the rental property yourself, the last thing you should do is invest in a neighborhood where you don't feel comfortable being in, and where you don't feel comfortable talking with the people who live there.  Don't invest where you can't connect with the people who live there. That's a recipe for disaster.