Great Rents Tough Neighborhoods

If you want great rents, tough neighborhoods are the place to be.

This is one of the problems with the real estate business.  Almost all the great rents are made in the really tough neighborhoods.

Why is this a problem?  

Well your tenants sometimes get shot and then can’t pay the rent.

I had one house and the husband and wife kept getting arrested.  This worked out fine for about 2 years, as soon as one got out of jail within a week the other one was locked up.

Then one day they both got arrested at the same time.  The house filled up with their homeless friends and I had to evict them.

While either one of them was out of jail I was getting some great rents.

You learn things like don’t stand in front of the door when you knock on it, in case someone starts shooting through the door.

In a decent neighborhood you will currently pay about $300,000 for an average house that will rent for about $1300 a month.

In a bad neighborhood you will pay about $100,000 for an average house and can rent it for about $1200 a month.

If you have $300,000 to invest buying 3 bad houses will make you a lot more rents each month.