I Like It, but… - Posted by Jimmy
Posted by Jimmy on March 12, 2006 at 08:01:31:
Two or three investor/rehabbers can completely turn around an entire block. and add a ton of value in the process. I’ve done it.
I’ve also stubbed my toe when I tried to be a pioneer in a bad neighborhood, and no one followed suit.
In the situations where my efforts were successful, all of my efforts, and those of others, were directed to a single block, or a couple of contiguous blocks.
Low income, high crime areas can be profitable enterprises. But you need to have super attentive management, a quick trigger with the eviction papers, plenty of insurance, and some nosy neighbors. It does not take much to make your propert more desirable then the ones around it. This will increase your rents and lower your vacancy. But rats and roaches like nice places too. and I am not talking about critters.
It also takes little time for a nice property to get trashed, if you are not watching carefully.
One or two “anchor” tenants can help a lot. I love elderly stay-at-homes. They see everything, and love to talk on the phone. They don’t smoke crack, don’t turn tricks, and don’t have wild parties. and they don’t like it when the neighbors do any of these things.