How and what is used to draw line in a lower grade neighborhood?

IOW, where does one draw the line in a neighborhood? I’ve read what a lot of authors have said, but how does one know where to draw the line. Short of a multifamily/apt. having crime tape and a chalk outline with blood stains, what helps in determining which is too much or problematic?

Does anyone have any illuminating experiences and/or thoughts or criteria in what should be noted when evaluating whether or not to invest in a given property?

Thanks :slight_smile:


The line is drawn where you will walk at night.

Because you will have calls and have to be there after dark. That’s a given with rentals.

Different people have different comfort levels about danger. If a property is outside of your comfort level, don’t purchase there.

Personally, I would not buy a property where bullets fly regularly or where serious gang problems exist. However, Tatertot is exactly right. This is a personal decision based on your tolerance for dealing with the people you will encounter in the area.

While I have many very nice, middle class houses, I specialize in turning around problem rental properties. They often are infested with drug dealers, hookers, drug addicts, and deadbeats. Many of these people are carrying guns, but there are not many bullets flying (at least in my direction). However, this is Ohio and it is a MUCH DIFFERENT threat level than some of the big inner cities where gangs are ruling the streets and kill people with relative immunity. I would not feel comfortable buying rentals in these areas. In my area, the neighborhood changes street by street. Taking over a few key properties on a street (and kicking out the drug dealers, hookers, and deadbeats) can literally turn the neighborhood around!


Depends on if you are going there or not. I have property managers for all of my rentals. The best way for me to know is to call property management co.'s or my own managers. If you can’t find any pro’s that will manage it there is your answer.
My first multi unit was in a bad area. A great property manager is worth his weight in gold. I have one manager at a mobile home park I swear has fun messin with all the riff raff.
In my area it is very financially feasable to buy d grade property. The cost is much less ($40-50k) per door where a and b grade stuff is over 100k per door and the rental rates are not that much different.