How BAD is it investing in the ghetto?

[Ersi Bice]

So obviously the "hood" is not the ideal place to invest in rental properties but how bad is it really? Can someone brake it down for me? What are the Pros and Cons and do the Cons out way the Pros or does it depend? Does anyone have any horror or success stories about their own experiences?

PS... I live in North Jersey and am sort of referring to the cities known as Passaic and Patterson

[Missy H.]

Some people say that "Ignorance is Bliss."  However, sometimes, ignorance is just plain ignorance.

I have a duplex in a neighbor that many would call sketchy.  I do my due diligence and screen all tenants.  Background checks, in depth conversations (aka interviews) full reference checks both personal and business, and a favorable debt-to-inome ratio......a salary of three times the rent does no good if there is excessive credit card debt.)  One tenant has been with me for 5 years and the other for two years.  I have a 2% cash flow and hardly any maintenance fees because i rehabbed the house for safety and efficiency.

I manage it myself because I do not give them a need to call me for unreasonable repairs. 

When people are treated with respect and an open communication is developed and maintained, a relationship is built that is based on trust and respect.

The bottom line is that if I don't treat them like crap, they don't treat me or my property like crap.  Sometimes it is not about the neighborhood but simply about the people.

.....just saying