Avoiding Bad Neighborhoods

As investors, a critical factor to insure a profitable investment is to AVOID BAD NEIGHBORHOODS! I do not care what the asking price is or what the value of the property is, if it is in a BAD NEIGHBORHOOD I am NOT buying there. There are several reasons for this requirement. First, your rents are going to be below market value and the quality of your tenants is going to be lower. With a lower quality tenant there is a greater likelihood the damage will be beyond normal wear and tear. You could also experience difficulty selling the property in any reasonable time frame as most people are not looking for a price below market value and there is an increased chance of vandalism during vacancies.

Check back for more info on rehabbing...next week I will be talking about dealing with difficult contractors.

Stay Motova8ed,

Joe Finnegan
Motova8.com