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Updated over 6 years ago, 06/24/2018
Would you buy in a "sketchy" area with positive cashflow?
Any and all opinions are much appreciated!!
So here's the situation...I'm an aspiring investor looking to make my first deal, focusing on multi unit properties (mostly duplexes). ... I live in San Diego. Prices and competition are through the roof so breaking into this area as a new investor is challenging.
The only properties I've found so far that cashflow in my price range are in areas that are "sketchy" aka high crime, gang presence, etc. However, they are improving (crime is declining and rents are increasing). And for those not from San Diego, these areas southeast of the city are a 10min drive to the heart of downtown.
The same was said about similar neighborhoods like North Park and Normal Heights 5 years ago. Now, the areas are booming and 400k properties back then are now selling for upwards of 600k.
I'm tempted to make the leap of faith knowing the financials work and I would be very strict with tenant screening. To reiterate, I'm NOT banking on appreciation (although it would be nice). This is real rental cash flow.
What do you think??