Run Down Area

[Alan Chambers]

Morning all,

Love these forums so I thought I'd ask the experts.

First piece if exciting news, just signed up to start my agents license next week...soo excited. I plan on a three prong RE career, realtor, wholesaling and the odd but and hold. Here's my question:

I want to start investing like yesterday, there is an area 40 minutes from me that is really run down in parts and crime rates aren't good. I'm not that familiar with the area. The thing is it has tons of Quads and some are like $80k but average rents are $800 which seems great cash flow. I can afford a deposit on one now (all other areas start at $300k).

Should I risk my first buy and hold in a cheap, bad area and employ a property management company to save me the hassles or wait a year or so and go where it's more pleasant???

Sorry if this is long, can't wait to hear your thoughts.

Alan.

[Michael Lauther]

Alan Chambers A property manager will not solve the problem of a tough area only make a living handling those problems for you. I am not clear on the rent you would expect from a Quad but if you apply the 50% and 2% guide or rule you would have an idea if the return might be good enough to take on the challenge of owning in an area like this. If you do not feel comfprtable visiting the area, I would not take this on as a first investment.