Rental Property in "War-Zones"

[Chris McDonald]

Im new to real estate and I'm sure like everyone, I heard about people Section 8ing their property's in these "war zones". I've seen posts about semi-war zones but nothing about full on war zones.

Now when I say war zone I'm talking about very ghetto areas (drugs, guns, gangs, the whole 9 yards). I was looking at some of these properties for around $25k-$35k. The properties aren't in that rough shape either only seem to need some paint and carpet for the most part that's it.

I was looking at the going rate for some of the section 8 properties in the area and they're getting $900-$1,200 per month!! Now of course your going to get some rough tenants in there that aren't going to take good care of it. But it's only a $30k rental property. Is the headache worth it? Cause you're obviously getting your rent payment every month (assuming their Section 8 covers have 100% of the rent). Is there something I'm missing here that keeps investors away? Also I'm aware there isn't going to be appreciation on these properties, I'm asking from a cash flowing stand point.

[Kenneth Garrett]

@Chris McDonald

Why do you want to go to a war zone.  Even with Section 8 the tenant pays a portion of the rent.  Are you going to collect it in person.   If your afraid to go to your own property I think its a big mistake for your own safety and any maintenance that needs to be completed.  How will you verify repairs have been done.   Its a bad idea in my opinion. 

Good Luck.