As a buy and hold investor how important is location, location, location

[Craig Montesano]

Hi BP

Location, location, location .. ....How important is this to a long term buy and hold investor?

The market I invest in is a small one. I currently have 5 sfr. I'd say 1 is in an "a" neighborhood. 2 are in a "b" neighborhood. And the other 2 are in. "C" neighborhood. All have great tenants and I've never (at least not yet) have had any issues with rent or anything troublesome.

Now comes my quandary (sp?)

There is a nice duplex located on the west side of my town. Which is considered to be the "bad " part of town. Though I see it as no worse than the houses I have in the c neighborhoods. Duplex is 2 bbedroom 1 bath side by side, with a detached 2 stall garage. It is by a well know and we'll attended church. I think I can get 450 to 500 a side. Listed at 57k but tho m I can steal it for around 30k. Seems like a no brainer for me to pursue it. My only issue is it being on the "west" side. But since I intend to hold it for years to come location isn't super high on the priority list.

Any thoughts? Thanks eveyone

[Al Williamson]

Hi @Craig Montesano

The mechanics are different in lower end neighborhoods and so is the required landlording style. The tenants on the "west side" will have a different set of needs than you may be familiar with - you need to factor this in with the price.

You can not make an apples to apples comparison - this will be a different beast.

Now you can master low income landlording - it's possible. But you need to have a heart for it. And I hope you do.

Regarding the church, typically well attended churches in low income areas are filled with people who no longer live in the area. I would not let the church influence your decision.

Best to you.