In 30 years, the house will deteriorate and depreciate to a very low value, whereas the land underneath may appreciate if it's in the bay area.New investors really need to figure this out.Originally posted by @David Freeman:@David Song That is ideal (I'm from the Bay Area) but I can't find a sub $250K house for my first property within a 1 hour drive to the city, unless it's a wreck with a lot of work.

I just got paid off on one that was out in the queens this week.. that area was not as good but it seems to have come back a little I fear though those areas given the quality of the buildings will just keep deteriorating over time.. there literally is almost zero activity for homeowners.. so that's just an issue.. now granted there are nice pockets of So jack nice ranchers on slabs etc.. but a lot of perimeter foundation cheap little houses as well.

It's a seller's market and if you let the property deteriorate by not making any repairs it will eventually become uninhabitable.  

They lived in another house we owned for a year, but when her condition deteriorated and she needed her parents to move in to help, we offered another house we owned that had a finished basement with two bedrooms, full bath, kitchenette. 4.)

@Kevin Allen - These are for Chicago, but likely very similar for other local housing authorities...MOST COMMON FAIL ITEMSInoperable light fixtures and improperly wired electrical outlets (reverse polarity, open ground, hot neutral reverse, etc.)Deteriorated and unstable paint on surfaces (peeling, cracking, chipping, etc.) in units built prior to 1978 where children under the age of six reside or will resideMissing, inoperable or incorrectly mounted smoke and carbon monoxide detectorsBroken or inoperable windows (cracked glass panes, broken locks, drafty frames, etc.)Exposed electrical wires/connections (light fixtures missing globes, electrical junction boxes missing cover plates or knockout plugs, breaker boxes with open sockets, etc.)Broken/faulty door locks and drafty doorsCutting hazards, including protruding sharp nails pipes/metals objects with jagged edges,deteriorated sheet metal, cracked glass blocks on windows,etc.

Years ago I was doing a flip in Seattle and there was a house down the street that was boarded up but I could look through the boards and I saw old sheetrock, some deteriorating plywood and some scraps laying around some saw horses and a thick layer of dust.

There was a deteriorating detached shed in the back yard of one of my places. 

If you keep them month to month, you can move them on out if that deteriorates.  

I like MTM best; if their financial situation deteriorates it will be easier to get them out and for a good location you won't be empty for long.

Ie deteriorating roads, failing retaining walls, bad roofs.