Inner City - How Bad Could It Be?

[James Brewer]

Hi Folks,

I've heard investing in the inner city and low income/high crime areas is horrible, but I'm here to ask either how you've made it work to be successful, or exactly what kind of nightmare you've had?

I've been considering trying to BRRRR in the inner city in several cities in the Midwest (KCM, STL, MKE, CLE) and I live out of state. I've spoken to many local very experienced and saavy agents/PMs who caution against it due to to the amount of headache involved with low income areas and the crime, dangers and risk that come along with it. Specifically that good PMs will refuse to manage rentals in the inner city, and contractors will refuse to bid your job.

While this is excellent and sound advice, can anyone share if this has happened to you or you've found a way around it, and offer any additional reasons/showstoppers that make this a bad strategy - or offer how investing in low income areas have been a home run for you?

 If I were willing to give it a shot anyways and learn from experience, I'm wondering what other huge negatives there may be that I haven't discovered thus far and how likely I'd be to recover from my mistakes. Clearly I'm pretty risk tolerant and hoping I can make it pay off - posting here to gain your collective wisdom!

Thanks!