Real Estate, Property & Homes
You are right. I have properties in C area and over years it changed to D area. Also, went from C to B. Wish we had a crystal ball.
i imagine myself having to collect rent with a baseball bat.
What about an area that was C grade 20 years ago and will likely be C 20 years from now? An area you know well that you have knowledge of and may have a reason for that situation….such as a small patch of homes near a river or bridge in town that is isolated from the D areas? I understand you may not see much appreciation other than to match inflation but wouldn't these still be okay for sake of ROI?
What other factors do you consider when determining the grade of a neighborhood? Ex: what type of stores and features are available within the area?
Awesome Video..My Real Estate Mentor taught me every house is a step up for someone!! He stated he could take me downtown and pickup someone homeless and to them, a house in a D neighborhood is a Taj Mahal . Thank you for providing such great info Clayton..You have a subscriber for life!!
I think if you're going to buy property in a D neighbourhood the best strategy is to buy bare land and then sit on it until the area becomes more desireable. But then your a speculator rather than a cashflow person. And your gambling pretty much. Bare land of course means that there is nothing there to steal, no furnace someone can rip out of the place or water heater etc etc. Of course people could use your land to use drugs and so forth. I think if you buy in a D neighbourhood your going to have to deal with more evictions, a higher cost with higher tenant turnover etc, but then of course you could get into a property at a much more affordable price to begin with.
I have a property in a D neighborhood I would like to buy. What I am waiting on is to see if the units next to it I can buy. It is a cluster of row homes about 6 in the row. The end unit another investor has a contract on and that was the one i really wanted because was pretty much turn key. The units next to them are all in need of rehab. So still deciding. Ares is lower crime now due to the outlying areas being renovated and marketed to younger people.
I completely agree with buying a block or a few D properties in order to make a better neighborhood.
D is for Detroit
OMG, this is EXACTLY my strategy right now. Buying up a whole street to raise the bar in that whole area! My hubby thinks I’m nuts
How do you figure the classification for a neighborhood? Is based on your Personal Research or is there a database or website that ranks them accordingly??
where can you find what kind of class of neighborhood you are in? ?
I have a question about the LLC. I live in Illinois and want to start buying a property in Missouri. Is there a way I should go about that?
Clayton that was very helpful. Thank you
The heights cash flow is in D level neighborhood, but more headache as well.
Very helpful. I'm currently deciding whether or not to pull the trigger on a nice property in a C/D neighborhood.
My partner and I ARE buying in a D type of neighborhood in a medium to largish sized town in Florida. We independently thought the same thing as you…..that is, buying enough properties, rehabbing them and improving the neighborhood to the point other investors will see the progress. "Our" D neighborhood is very close to the center part of town, and universities and is very cheap…(15,000 to 25,000/unit, concrete block buildings, way, way below replacement costs and are running about 10,000 to 20,000/unit to bring up to good standards. We'll let you know in 10 years if this was smart or not. : )
Not only are you getting a positive ROI. You're also showing that an investor can improve the conditions in a D neighborhood. Very solid video.
I'm having this conundrum myself: looking at the many homes in Jacksonville, surrounded by many job opportunities and growth, I'm unsure if that makes it ok for me to ignore the fact that it has much higher violent and property crime rates than the rest of the U.S. What are your thoughts? You said in another video Jacksonville is the only place you like in terms of rentals in FL; what makes you look over the crime there?
hahahaha He mentions that he never buy a D neighborhood, but all the ones that he sells is D/War Zone areas
He would rather own a few rentals in a D neighborhood than A. Yaaaaa right! You just lost some credibility
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