Invest in Low income high crime areas (section 8)

[Barshay Graves]

Wanted to know seasoned investors opinion on this. There is an area where property can be bought for under $50k and in very good condition, many move-in ready but in one of the countries worst cities; Camden NJ. Thoughts???

[Anthony Gayden]

@Barshay Graves I am focusing primarily on low income areas. These areas offer the best cash on cash return, and they offer a way for those of us who aren't already wealthy, to begin our investment careers.

I used to be very much low income. However, that didn't mean I was garbage, or that I would tear up my rental, or not pay. No, it only meant that I earned less money than the average. I have always hated the stereotypes, and having actually lived on the other side, I think differently than many who have never been there.

I have seen this sort of backwards thinking by certain people my whole life. They look down on the lower income and assume that they are all garbage, criminals, and idiots. I vowed when I got into real estate investing that I wouldn't be one of these people, and that I would never be a "slum lord". My apartments are lower cost, but they are not slums.

At the same time, it is completely unrealistic to suggest to a new investor without much income that they focus on higher end rentals. Perhaps eventually they will be able to go that route, but when getting started, it would be difficult.