All Forum Posts by: Greg Gasiorowski

@Dewain J.

Yea, I have heard small things discussed about Section 8 housing that I'll have to look into further. Thanks for pointing that out. I think you're right as far as the rent profits would go because, if I need to invest the money into the home just to make it "secure" in an unsafe neighborhood, I don't know think it would be worth it in the end.

@Mike Wood@Jeremy Pace

Thank you both for the responses. You basically confirmed the doubts that I already had for the area. The homes were tempting because they were inexpensive, but, of course, there's a reason why there are cheap.

@Mike WoodI have heard it was better to focus on homes that were "middle of the road" because you are absolutely right, the neighborhood can't be changed. With that said, they are trying to improve the area. Over the years, a casino has been built to generate revenue for the surrounding area and along with a new soccer stadium. However, I seriously doubt that things will improve in the area anytime soon. It's just sad because these areas used to be nice places 40-50 years ago.

@Jeremy PaceThanks for the insight about the maintenance. I would hate to invest my time and money into a home only to see it completely destroyed. Normal maintenance is expected, but I can imagine this area wouldn't be very pleasant for a rental as far as upkeep is concerned.

Thanks again!

Hello everyone,

I'm new to the forum and have been doing a lot of research in buying rental properties.

I currently live in the Philadelphia, but would like to invest in lower income areas such as Chester, Marcus Hook, or Trainer (PA). I'm very familiar with these areas since I grew up near them, but wanted an expert's opinion when it came to buying rental properties in low incomes neighborhoods.

I've heard mixed things about investing in low income neighborhoods such as the quality of tenants, the actual profit gained from renting in these areas can be low/minimal, and crime associated with these environments.

However, I see these areas as an opportunity to at least start my real estate venture. 1.) Housing in these areas is extremely cheap so I could easily afford the homes for sale within the area. 2.) The quality of tenants can determined by properly screening potential tenants. 3.) I could establish security measures for these homes such as alarm systems and upgraded windows and doors to minimize burglary and offer tenants more peace of mind.

First, I would like feedback as to what can be expected in investing in low income areas and if it is truly worth the expense.

Secondly, I would like to know how you obtained your property (I'm referring to your first property - ie how you started). I know there are many avenues in order to buy the property and, again, this is a topic where I'm hearing mixed things. I've heard some people say you could got a traditional mortgage to start off, but I've also heard that people are shying away from this method (traditional mortgages are dead?). I've also heard people taking out lines of credit from their own homes to fund their rental property, but I'm not sure if that's a smart move.

Any advice that you could provide would be greatly appreciated....

Thanks!

Greg