A" product is much more desirable than a B or C product that carries more risk.Most "A" product is owned by national corporations and leased by national tenants except for a few mom and pop spaces.These have a much lower chance of default with corporate guarantees and thus a lower rate.B or C product in suburban to rural areas is even more at risk than urban cores for lending.In many markets Multifamily and Hotels are in a buy pattern and lending is strong as most lenders see low risk at the prices buyers can purchase for.Hospitality sectors such as lodges,water parks,ski resorts are still getting pounded with a slow recovery.Industrial still seems to be doing well in many markets.Retail and Office as still seen as very weak and risky for lenders unless you have a strong B to an A product in urban cores that have already started to recover.

Question: Does the attractiveness of the house and the lake view with space for a dock outweigh the undesirable property you must drive past to get to it?

If you're looking for a deal to flip or wholesale, you're likely going to need to pound the pavement and search for that off-market deal.

Generally; unbuidable, title issues, tax issues, wetland issues, etc. that make them undesirable for anyone, except suckers.

Pay the electrician and pound the PM.

If your purchase price is $60k and the structure is worth (discounted) 120k, that means that the land value is negative $60,000 - somebody will basically give you 60k to take the land, because it is so undesireable.If the neighborhood is so undesireable, that someone is willing to give you $60,000 to just take the land, you will have a hard time finding a tenant, who is willing and able to pay top dollar - they would rather live elsewhere.Second, cashflow is the most important, but often not the biggest of the 4 income sources you have as a real estate investor.

Some of the disadvantages are that you could possibly get stuck with a unit full of tires, or some other undesirable items that you have to get rid of.

For an awesome applicant, I'll pound them hard for about a day, but if I don't get a reply I move on.And again, during that time I continue to accept applications.

I'm looking to find out what strategies are working for upside down properties in undesirable neighborhoods.

As you may already know, the luxury home market isn't as greatly effected with the sub-prime mortgage meltdown, as most of the buyers of luxury homes have the necessary capital to purchase.In addition, with the strength of the euro and the pound against the US dollar, now is a great time for the British and others from abroad to invest in US luxury homes.There are many other reasons to explore opportunities in this market too!