High crime/rough areas

[Connor E. Giavasis]

Hello all, so I'm finding that what looks like an easier way to get started in this world is to go to the areas no one else is willing to go. I keep hearing the term "slum lord" in reference to people who own multiple properties in these types of areas. My question is, why is it such a bad thing to own property in these rough areas if you can find the deals there? Am I misunderstanding the term "slum lord"? 

[Eric Gerakos]

What may look like a "deal" on paper can often turn into a nightmare. You need to consider the type of tenant that a high crime area will attract. Higher maintenance costs, higher vacancy, tenants not paying rent. There is a reason that most investors avoid rough areas. Sometimes they can be profitable but you really need to look before you leap and know what you're getting yourself into.