Buying an investment in a rough neighborhood

[Tony Gaultney]

Hi everyone,

I’m currently a new investor wanting to purchase my first rental property. I live in a Suburb outside of Saint louis and I’ve found homes in the saint louis area fully turn key renovated property single family homes for 35k-50k. I did market research on the rent and they go anywhere from 650-900 a month rent. Just would like to get you’re take on buying rental investments in areas of town that are a little more rough than some. Thanks for you’re time .

[Linda S.]

@Tony Gaultney,

We focus on C/D properties and focus on providing high quality, low income rentals.    My favorite rental quote--- "Everyone needs a home!"

One thing I would STRONGLY advise, is to go to each street-- if it's cheap, why?  Is it right near a ghetto where it has weekly shootings nearby?  Are all the houses nearby vacant/boarded up, or do you see other money being invested?  I love seeing older people as neighbors, they watch the neighborhood and often own their homes and make wonderful neighbors.  See new roofs-- great-- that shows the owner is invested long term.     Is there an obvious unlicensed pharmacist practicing?   you absolutely  must understand why it's cheap, and then see if you like and believe in the area.   Checking it out visually and in person is  an intangible human test that you can't quantify, but IMO is incredibly important.      

 Stupid money IMO is just thrown where the math/numbers make sense,  and then people are so surprised it's a really, really bad area!     Don't fall into that bucket, use your brain and your eyes/gut and make an educated and smart decision!