I know a couple New Jersey investors investing heavily in Paterson, for the express goal of urban renewal (and not necessarily returns).

I also know guys who are multi millionaires and are heavily leveraged.  

I can assure you someone overpaid heavily for the home.

At lease if you buy it while they still live there they might get something.Same with heavily distressed properties or properties a seller inherited and doesn't want to deal with.Listing it might get it sold at a higher price, it might not.

I understand where everyone is coming from who drives their car until it dies and then go out and buy another heavily used one for cash, but if I pinched pennies in every aspect of life I would go crazy.

I will stick with the niche I have been researching heavily on.

I think that you may find that the price to rent ratios on luxury condos will leave you with a low rental cash return and that you risk competing heavily with higher quality condos in the near future.  

The houses look in heavily used shape and probably have been vacant for years.

I have an older home (built in 1940s) on a heavily wooded street.  

Do you need to be heavily capitalized to invest in these types of areas?