Buying near new casino

[Sam Hendricksen]

Good morning fellow BPers,

I'm looking at buying my second property, this time a multifamily with my VA loan. Most of the multifamily in my area is in Norfolk and Portsmouth VA.

There’s a new casino opening in portsmouth, Rivers Casino. And im looking at a quadraplex a 5 min drive from the casino. It’s on a quieter street, low income area. I’ve heard that this neighborhood doesn’t really have any problems from a social worker but outside areas aren’t good. 

3/4 units are currently rented at $900 each, renters pay utilities. I’m wondering if the new casino will raise the values in a few years and if a low income but not crime heavy area would be worth it?

https://www.riverscasinoportsm...

[Jeff Schemmel]

Having watched many prior co-workers get paid, cash their check at the casino, and promptly deposit it all into a slot machine I can tell you with pretty good certainty that casinos don't have a positive effect on disposable income and good use of the existing income in the area surrounding :)

Are there solid local employers OTHER than the casino in a 15-minute drive?  Is there a hospital or a college around?  If it were me, I'd be looking for something in that location to offset the negative impact of the casino.  that OR consider buying a property you could short-term rent to people who literally just want to visit the casino if it's a large/decent one.  There will always be people who want to rent by one but I wouldn't count on one raising property values - I would in-fact assume the opposite.