Houses under $60k worth investing in?

[Drew Sommers]

I've been trying to narrow down markets where investing in SFR makes sense for houses in the sub $60k range. I see these houses all over the west end of Louisville, and I'm wondering if anyone has had any success with them. According to city-data.com the crime rate seems pretty low for an area with such high unemployment. It doesn't look like the taxes are high either.

Does this price range mean there is a lot of deferred maintenance?  Do tenants who rent these places pay late, if at all?  Is rent control about to be implemented?

Thank You

[Michael Seeker]

@Drew Sommers - I know of several investors who purchased property in the West End of Lou and are now stuck with them.  They don't want to own them, they don't make money on them and they would have to come out of pocket to sell them.  There are definitely people doing alright in the west end and making money, but I think you'd have a really hard time doing so without being in town and learning the neighborhoods very well.

These properties do not appreciate and they only cashflow if you get tenants in them that pay and don't move out which can be a challenge.

The numbers will look good on paper, but you should talk to somebody who owns property in the specific neighborhoods you want to invest in and see what their experience has been.  As @Rob Bergeron points out, there are some pockets experiencing higher demand/growth but if you're not familiar with them then you could end up buying a block or two the wrong direction and having a horrible time with your investment.