How to earn buying a real estate in a bad neighborhood
When people wants to buy a real estate from me, usually their first requests is that house should be in a “nice” neighborhood. And it makes sense to purchase a neighborhood that is safe and enjoyable. But there are some advantages to buying property in the bad neighborhood or on the wrong side of the river. This article contains some highlights of them.
First, if you buy a lease, you usually get a better cash flow in rough neighborhoods. If you rent your property, there are more renters and they are more long term. It is difficult to rent in the neighborhoods because many people looking to rent and those who are generally short term while looking for a house to buy.
The other aspect is that there is less concern in your area during descent, because it is already down. Good neighborhoods can get bad and bad neighborhoods can get better. Since the price usually reflects the current state, the purchase in an area which has potential for improvement might be a good idea.
You must remember that these properties are more recession proof. When the economy goes south, real estate in the rough neighborhoods is less affected.
So, in general, I am not saying that you must buy in a bad neighborhood. But simply that if you are looking for long-term investment, sometimes it’s a good idea to walk on the tracks and look around a bit.