Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got a quick video on real estate junkers and the truth about investing in them.
1. Tenants Terrible
The reality: While yes, there are some bad tenants in the bunch, even a higher percentage than in middle-income housing, there is a solid core of folks in the lower-income areas
– Tenants who, when managed properly, pay their rent and remain in your property for several years.
– The type of tenants you find will largely be based on the location of the property, AND
– Your Due Diligence – tenant screenings
2. All Low Income Housing Properties the Same
– There are varying types of low income housing, not everything is in the slums
– You do have your war zone type areas, which we encourage you to avoid, cars are on the front lawns. Bars on windows, etc…
– But then you also have the upper level areas, where families will stay long term and pay rents
– Search for Section 8 Housing, and remember those Zip Codes
3. Only slumlords invest in Low Income Housing
– My family invests in low income housing for over 20+ years and trust me, we aren't slumlords.
– We deal with nice single family homes, in low to middle class areas.
– Believe it or not, most successful investors either started in low income housing, have owned low income housing, or at least been involved in some way or another.
Low Income Housing isn't for everyone. It takes a very specific type of investor to be able to build wealth with low income housing, but the opportunity IS there. Believe it or not, many successful investors today
got their start, or still invest in low income housing.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
We love your feedback and welcome your comments.
Please post below: