Investing low income cities questions

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Hey everyone!,

I am from CT here and have been looking around at some Bank REO's using this website. I have found a few that are priced really cheap like 15-40k for some multifamilies. The neighborhoods are rough as I expect and the properties all need a good amount of work. My question is that even if the area is rough and has drugs, crime, and should I stay away from those properties because most likely the tenant will destroy the place? What should I look for when investing in cities with low income families ?

[Mike Jakobczak]

I am not a big fan of lower income areas. I find they bring a lot of baggage with those properties. Also exit strategies are limited, since most of the time you will be selling them to other investors.

I find usually investors who are into properties in these areas, specialize in those types of properties. They are usually very hands on, or have property managers who have many years in these types of investments.

If you are unfamiliar with an area, I wouldn't get involve in the property by yourself. I would try to hook up with someone who mainly deals with properties in the area, and can teach you details on how to be successful.

Neighborhoods can get pretty bad and sometimes even the lowest prices don't make more desirable to investors.