Anyone think buying homes in rough areas and renting them out is a good idea?

In sacramento, ca homes in higher crime marginal areas are practically being given away- you can buy some for as low as $35,000 and rent them out for as much as $700- $1000. If you give them to a landlord that charges $75 to take care of your rental and deal with difficult tenants would you consider this a good deal.





Also that home that is $35,000 was sold for $160,000 during 2005 boom times when credit was very easy.





All tips welcome! Thanks !Anyone think buying homes in rough areas and renting them out is a good idea?
I personally do not buy these. Not that they are not great investments, I just do not buy anywhere I would not go at night. I am a white female, a big target would be on me in these neighborhoods.





However, I know 2 investors who are making bank. One purchased over 100 this year alone, and is still buying at least 2 every week. She is making bank, has so much cash flow she is swimming in green.





The other is buying blocks, owns most of a neighborhood already. He is fixing the places up. He has 40 or no. He is not swimming in green right now, but long term I think him and his children are set for life.





One thing to keep in mind, you have to jump on these deals, LOTS of other people are jumping too. Second thing, you need cash, you can not finance them.





One of the above poster criticized renting to blacks and Mexicans. I can tell you that Mexicans are fantastic tenants for these areas. They pay their rent on time, in cash. They take care of themselves, they will not call you up whine and crying over every little thing. In fact they will never bother you at all, you will see them at your door, once a month, cash in hand. I rent to several Mexican families (I rent in middle class neighborhoods, not low) and just love them. My friends who rent to the lower income ones low them as well, they are common topics of discussion when we meet up.Anyone think buying homes in rough areas and renting them out is a good idea?
The housing boom of 2005 is long past and you wont see that for another 15 to 20 years.





These apartments probably need fixing up just to make them livable. On paper it sounds good, but Its not that simple to rent out units in low income areas. Its actually a big headache.





Your basically dealing with the blacks and mexicans, they have absolutly no respect for property. May sound racist but its the truth. If your black then you already know exactly what I mean.






You would want to rent the house to a good tenant. A good tenant is less likely to rent a house in a rough area. Most likely, your rental house will either be rented to people living a rough life and don't pay rents, or it will sit on the market for long time.
Not unless you buy the houses really dirt cheap and are willing to accept section 8 housing. Great to be a ';slumlord';.