Posted by chris on October 28, 2000 at 21:50:38:
Sylvia-
If you went into one of these neighborhoods alone during the day and got out of the car would you feel safe? This may provide some clues as to whether or not you want to pursue this. If you can deal with all of this and you can get the properties cheap enough it may be a niche for you to profit in.
-Good Luck,Chris
Not your Bread and Butter Neighborhood. - Posted by S. Smith
Posted by S. Smith on October 28, 2000 at 21:22:07:
Every thing I’ve read says to buy in bread and butter neighborhoods and I can understand why, but what about all those houses abandoned in not so nice areas.
Is it possible to get these at ridiculously low prices, put a little work in them and rent them or lease option them. I realize the tenant would be someone that doesn’t mind living in a “not so great” area or can’t afford living in any area that’s better.
I have found several homes that match this scenerio. Are these sitting empty because there is no profit in dealing with them or what??
Has anyone had any experience in buying these type homes?
Thanks in advance for any info.
Sylvia
Re: Not your Bread and Butter Neighborhood. - Posted by Laure
Posted by Laure on October 29, 2000 at 09:16:03:
I do some of both neighborhoods.
For starters, I’ve found that the “lower end” home deals are a little demoralizing for me. The callers are mostly in debt up to their shirt collars, have no down payment, have no verifyable rent payment history, have bad credit, and are working as hard as they can to put food on the table. I find it depressing, personally.
You will wait a long time for a cash buyer, if you find one at all. You will have to help them fix their credit, you will go to the bank with each payment and convert cash into a cashiers check to prove payment later in the loan process. You will have to give them a large rent credit to establish a down payment. I have even driven a buyer all over town to pay off old debt to get a loan processed. And that’s IF they don’t change their mind, get a DUI, get arrested for wife beating. LOL… Sincerely, dealing in these neighborhoods just makes me feel bad. I am too empathetic and it hurts me. Not bad enough to throw them out for non-payment though ! LOL
I will still do deals in lower priced neighborhoods simply because deals are slow to find in my favorite neighborhoods.
Laure 
Re: Not your Bread and Butter Neighborhood. - Posted by Mark
Posted by Mark on October 29, 2000 at 01:12:20:
Lots of money can be made on these sorts of properties, but you have to do your homework. Do the same fact finding that you would do with any property. Also, look at your own comfort level. Are you comfortable dealing with buyers/renters in the area? If yes, do the numbers and if the profit is there, go for it.
Good Luck
Mark
Re: Not your Bread and Butter Neighborhood. - Posted by dewCO
Posted by dewCO on October 28, 2000 at 23:34:19:
Easier to find and flip probably in these neighbrohoods than to hold and find a good tenant. No matter, you still have to understand what the value of real estate is in these neigbhorhoods and make your offers accordingly.