Anybody owns rentals in D neighborhoods?

[Mary Jay]

Hi guys, does anybody own rentals in D/F neighborhoods?

If yes, what are the difficulties that you encountered?

I personally think that D neighborhoods in small towns are different than properties in D neighborhoods in big towns. Do you think there is a difference in quality of tenants between small and large towns D/F neighborhoods? 

[Josh Caldwell]

I did own D level rentals but I sold them.  I have a low idiot tolerance.  So I had to sell them to keep myself from murdering my tenants. 

The way the market works there is a inverse relationship between rental price and tenant problems.  The lower the price (relative to the market) the higher the rate and difficult of tenant problems.  Tenants in higher priced property will be responsible adults with jobs and they will have some level of education.  When you get down to D properties, you are generally dealing with large children who need a lot of supervision. I actually had a tenant who attempted to flush a chicken carcass down the toilet, and another who just threw dirty diapers into the back yard.  You will spend a lot more time in court with D rentals and they will keep you in court because they have been D tenants all their lives and they know how to work the system. Now there is GREAT cash flow in D tenants but you have to be able to deal with tenants. For me, money is not worth that much of a hassle.