So, there's this house that has been deeply discounted about $100,000 off its original listing price. Just last month there were 3 armed robberies next door to that house on a street with businesses. There have been muggings and rapes at knife point on that block in the past four months. I consider this too much of a war zone, but my partner insists to play the speculative game of appreciation as that area is slated for redevelopment very soon (it's in the process of gentrifying right now actually). I don't want to take the chance but he does, since a block over houses are still selling at $300K+. This would be a potential rental once it's fixed up a bit (it also needs work, but mostly cosmetic like refinishing the hardwood floors). However, we wouldn't be renting it out immediately instead we would live in it for 3 to 5 years. Which is why I'd want to bullet proof the property so to not worry about stray bullets fired at the businesses being held up next door. I'd like to put this in my cost analysis since my partner is claiming it's a good price, my argument has been just because the numbers seem good doesn't mean the socio-economic reality is good. If I can't convince him, I figured to rerun the numbers with all the repairs needed. Heck, maybe he is right and I'm wrong after all. I just want to make extra sure before we regret passing up this deal, which I'm tempted to move on from.
