One of the things that makes real estate investing so great is that there are different options for different tastes. A situation that you would may personally be staunchly opposed to, someone else may see value in. It doesn’t make either of you right or wrong, it simply boils down to personal evaluation. One of these scenarios is in buying rental properties in poor locations. On one hand a rental in a below average market may be available for a lower price, with subsequent higher cash flow. On the flip side the property will also have its share of challenges that not every investor has the time, or desire, to deal with. Only you can decide if these type of properties make sense for your schedule, portfolio and patience. The upside may be abundant but there may also be some unexpected headaches. Here are five potential problems with buying rental properties in poor locations.
If you see value in a property, regardless of market, don’t be afraid to follow through in your convictions. Just know that these are some of the potential issues you may face. You won’t face them with every property, or even in every lease, but the potential does exist.
Source: CT Homes