From Hood to Home, Investing in sub 30k properties

[Rip Rittell]

Investing in one of the roughest areas in Baton Rouge, LA has been a wild ride so far. I wanted to do a brain dump of what has happened so far and see what everyone else has experienced overall. My wife and I started investing in the 70805 (high crime, poverty, drugs, etc.) area code a few years ago. We purchase houses that look like they are ready to be torn down. Almost all of our purchases are full renovations (new plumbing, electrical, roof, floors, fixtures, etc). We try to stick to an ARV of 40x the rent. So on a 3/1 SFH that will rent for $600 we should be all in for $24k. We don't provide any appliances or cover any electricity, water or garbage. When we are finished remodeling our homes they are the nicest that the neighborhood has ever seen. Our tenants are thoroughly screened and vetted. In they end we usually end up renting to older couples that become our new grandparents. This area has some of the best people in the world. They are proud, respectful and kind. They take pride in their nice house and we rarely have a problem on a personal communication level with anyone. There are a few tenants that are late every now and then. But for the most part, all is well. We are investing in a targeted area of 600 available houses. I would like to own 100 of them before we move somewhere else. What are you guys experiences in high crime, low-income areas?