Posted by Mark Mallen on November 28, 1999 at 09:32:14:
I like to buy and hold property on the fringe of good areas. Usually near growing hospitals or universities. The key is to find improving neighborhoods. The payoff can be great but I also have been burned a few times.
A low income neighborhood can be a good area if it is stable and has low crime. I would not buy in bad areas that are declining. Another positive of investing in low income houses is that mortgage brokers are making it easier for people with fair credit to receive loans to purchase their own houses. People are getting loans that they never would have qualified for 10 years ago. Consider flipping or rehabbing and selling single family homes.
In my area thee are a good supply of ads for lease options, 100% financing etc. My question is where do you draw the line when considering certain areas. Does anyone out there have experience in flipping, or holding in low income areas. and what strategies work best.
Bad areas are Bad areas. but everyone needs a place to rent or buy. If you purchase a house for very little then rent or selling should be adjusted for the price of purchase. i.e. house purchased 14k sold 17k.