Neighborhood that you wouldn't consider investing in?
How would you describe a neighborhood that you wouldn't consider investing in? I live in a small to medium size Canadian city with a few not so great areas, but have some great deals from disgruntled landlords and/or foreclosures that I would love to take advantage of, but everyone I talk to tells me to stay away from these areas, granted they aren't landlords and really have no idea about the rental business. I'm also guessing the majority of the rentals in these areas are rented to, what the US would call section 8 tenants.
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My litmus test: Never buy an investment property in a neighborhood you wouldn't be willing to live in yourself.
I consider myself a decent middle-class person and want to rent to similar people. I don't care what the numbers say, if the neighborhood is a place I wouldn't let my family live in, then I'm not going to attract good quality tenants. Besides, you never know what turn of events may happen to you in the future resulting in your living in one of your rentals.
Of course, buying in a good area is no guarantee you'll always have great tenants, but buying in a bad neighborhood is a great way to discourage many good tenants from renting from you.