Ethically investing in poorer urban areas

[Madeline J.]

For a few months I've been learning about how to use my unused income from a full-time job to invest in real estate and have been reading lots of books like Hold: How to Find, Buy and Rent Houses for Wealth, Brandon Turner's books, E-Myth Real Estate Investor, the Rich Dad Poor Dad series, and listening to the BiggerPockets podcasts. 

Now I'm realizing that for this whole idea to fit in line with my values I'd really like to use my investing to not only create a passive income for myself but also to contribute to making low socioeconomic urban neighborhoods better, particularly for kids who grow up in those areas, like helping them be less exposed to toxic substances and pollution, or have safer neighborhoods to play in, or more access to health/education resources. 

I have no idea if this is a feasible goal as a landlord or if/how people have tried to accomplish this in the past. But I'm having trouble finding books to read on this topic, especially ones that are directed at how potential investors could get involved. If anyone has any resources to suggest, please let me know! Thank you.

Note: My main market would be the Twin Cities area but I'm curious about this topic nationwide.

[David Faulkner]

Ethical is necessary but not sufficient. What you need is ethical AND profitable. Doing good does you no good if you go broke doing it. On the other hand, getting rich by cheating others is not sustainable either. You need both.

There is a good reason that most experienced, successful investors avoid and advise against investing in the ghetto; it is too risky and too difficult to be consistently profitable. There are also good reasons why many of the poor in those neighborhoods stay that way, and most of those reasons are NOT fixable by you as a landlord.

Ethically providing high quality rental property to good, hard working, middle class families at a reasonable rate is good enough for me, and profitable.