Buying a house in a depressed area?

[Sam the Caveman]

I just looked and there are more than a dozen houses for sale less than $5k in my city. They are in the ghetto though, but some of them are not too far from the freeway. There are many for $3500. They all could use some work, but if you did the work yourself and spent another $5k, it would be a nice place, just not so good of an area.

 

[jack Haze]

I just looked and there are more than a dozen houses for sale less than $5k in my city. They are in the ghetto though, but some of them are not too far from the freeway. There are many for $3500. They all could use some work, but if you did the work yourself and spent another $5k, it would be a nice place, just not so good of an area.

That's almost my situation. Luckily I'm away from the main ghetto but still, I wouldn't want my 5 year old Neice wandering those streets at night. I'm confident for myself though.

I figure I'll put about $5k into it, mostly rewiring, run for 2 years and at the end of two years I'll buy in an area I actually want to be in. At the end of 2 years, the thing could burn to ashes for all I care. Once I'm done I'll probably try to do some sort of RTO or rent it out.

 

[dankitydank]

That's almost my situation. Luckily I'm away from the main ghetto but still, I wouldn't want my 5 year old Neice wandering those streets at night. I'm confident for myself though.

I figure I'll put about $5k into it, mostly rewiring, run for 2 years and at the end of two years I'll buy in an area I actually want to be in. At the end of 2 years, the thing could burn to ashes for all I care. Once I'm done I'll probably try to do some sort of RTO or rent it out.

Sure, maybe you can defend yourself, or blend, or feel comfortable walking on the streets. But having your op and knowing you will be walking/driving in and out of that probably higher crime and police rate area with product or money, seems like a bad idea......been there, done that. Stay on this side of the tracks now, just not something I want to have to in the back of my mind, on top of just legal security.

 

[jack Haze]

Yeah, we all take our chances.

Thing is. I just came from a rented apartment with a landlord completely oblivious to my need for basic privacy. Long story short. He came in right in the middle of my grow and I had to shut everything down and lost my ass. I had virtually nothing in savings and had to flounder a minute just to have a roof over my head.

Ain't nobody coming in there snooping around without a substantial fight on their hands. Peace of mind in that regard is well worth my initial purchase price. A couple years from now I'll laugh about all this...Either that or will be sporting an orange uniform.

 

[IGROWMYOWN]

I bought a house in a depressed neighborhood on a dead end street here in cali for 26K first upgrade was a 200A panel and new wiring I did it myself but I am a electrician. the house is over 90 years old and needs a lot of work but it is coming along cheap house and no payment just utilities and taxes I have not had any problems at all.
keep the lawn and yard neat and clean and you will not have any problems all my neighbors are nice

26k in cali?

 

[buddah]

dont read the hole thread...but i would never ever buy a house in a deressed area for growing!! and then for a 2 k grow......!! you will have a hard time selling it....i guess you will not grow there your hole life - just for some years oe even month!!
RENT ONE...
if something gonna happen you can go elsewhere

 

[zor]

always buy the most expensive home you can afford, because in the future the payments are always at a bargain. that said in a dif way get what you want now, even if it's at your max because in the next market it might be out of your range... and as well it will be the best bang for your buck... pay now, reap the high market later.

this is all well and good if your house appreciates. But there is no way for anyone to know if this will be the case. Regardless of historical performance. If the market continues down, buying a more expensive home could make you lose more.

 

[zor]

renting and owning both have there pros and cons, however, one thing many people overlook is the FAT TAIL risk of ownership. There are things that can go wrong with a house that could negate any 'savings' you get over renting.

Often people assume they are 'throwing' there money away with a rental with nothing to show for it. This is partially true. however, from a purely financial perspective, a rent payment could be classified in the same category as insurance. You ARE gettin something for that money you pay each month. Its the ability to get the fuck out for whatever reason. Therefore, you are limiting your financial downside by renting.

if all goes well with a purchase of a home and its subsequent use, then sure, buying can be more economical. however, there is always the risk of a large expense taking out any potential financial advantages

 

[jack Haze]

renting and owning both have there pros and cons, however, one thing many people overlook is the FAT TAIL risk of ownership. There are things that can go wrong with a house that could negate any 'savings' you get over renting.

Often people assume they are 'throwing' there money away with a rental with nothing to show for it. This is partially true. however, from a purely financial perspective, a rent payment could be classified in the same category as insurance. You ARE gettin something for that money you pay each month. Its the ability to get the fuck out for whatever reason. Therefore, you are limiting your financial downside by renting.

if all goes well with a purchase of a home and its subsequent use, then sure, buying can be more economical. however, there is always the risk of a large expense taking out any potential financial advantages

If we're talking a $50k+ house, I'm somewhat in agreement with you. I see renting and growing a volatile combination. Sure there are exceptions to the rule but usually sooner or later, privacy becomes a huge compromise and IMO not worth it.

In my worst case scenario, I get busted. I'm fairly confident they'd have absolutely zero interest in seizing my home...If they did, so what? I'm out just over $3500 bucks. I would hope I'd get off at least one crop before that happened so I've already made my money back.

Trust me. If you had witnessed the hideous nightmare I just experienced while renting. You'd have a different perspective on this.

Now. Growing in a $500k+ home would add a whole new dimension to the mix and I'd be inclined to agree in full with you.

 

[fireburner23]

If we're talking a $50k+ house, I'm somewhat in agreement with you. I see renting and growing a volatile combination. Sure there are exceptions to the rule but usually sooner or later, privacy becomes a huge compromise and IMO not worth it.

In my worst case scenario, I get busted. I'm fairly confident they'd have absolutely zero interest in seizing my home...If they did, so what? I'm out just over $3500 bucks. I would hope I'd get off at least one crop before that happened so I've already made my money back.

Trust me. If you had witnessed the hideous nightmare I just experienced while renting. You'd have a different perspective on this.

Now. Growing in a $500k+ home would add a whole new dimension to the mix and I'd be inclined to agree in full with you.

I would agree with you, buying a 500k house just for a small 2k operation is ridiculous, but then again, if I buy a house where my payments for the mortgage are like 200-300 dollars a month, making your money back on a 2k operation isn't difficult. In addition, expanding isn't a problem either.

 

[pheno]

if i found a house for 5k i dont care how ghetto the neighborhood is i would buy it.
in california you cant find a house in the ghetto under 200k. if your lucky you might find a forclosure a little cheaper but not really.

our house is lower middle class and we paid 500k for it.

 

[DasFox]

dont read the hole thread...but i would never ever buy a house in a deressed area for growing!! and then for a 2 k grow......!! you will have a hard time selling it....i guess you will not grow there your hole life - just for some years oe even month!!
RENT ONE...
if something gonna happen you can go elsewhere

Listen when BUDDHA speaks...

THANKS

 

[fortitude]

Interesting...

Around here a $3500 house its a burned out tear down in the hood. A 50k house is barely mortgageable (livable, walls [not rough], secure windows and doors, functional heating and mechanicals) in these parts.

Anything under 50k is usually cash only, especially after the financial meltdown.

Closing costs are easily 10-20% of the purchase price with a minimum for all costs at a few thousand. This doesn't include personal due diligence such as inspection, engineer or survey.

I hate dealing with foreclosures. The banks aren't being real or timely, and the homes aren't mortgageable without thousands in repairs.

 

[jack Haze]

Foreclosures are a pain in the ass but if you search hard enough and do your homework. You come out good on one. The biggest problem I see thus far is back taxes and liens . Seems 98% of them have both delinquent taxes and storm water fees owed.

There are 3-4 LLC's out of Cali that are buying up all kinds of properties around here for under $10k. They try to flip them for 3-4 times what they paid. If that doesn't work, they offer the place as a RTO with like $800 down/$395 a month...They don't advertise that every one of them has $2k-$5k in taxes and usually $1k in liens that come with the place.

Treasury sales are much better as all tax debt is cleared on those properties. I got lucky (I think) on my place. It's 1600sf rather than 2600sf as my original typo but still a good spot.

I've not checked on this place in Cali regarding back taxes or liens but it seems incredibly cheap.
http://www.coldwellbankerattar.com/details.htm?id=23896

 

[ethereal]

I seen condo in florida for 30-40 k be cool to buy
one if it becomes a med state?....
TS

growing pot in florida is the worst. and the depressed houses have zero a/c.
to grow indoors the tropics you really want a climate controlled building,
and,
outdoors is even worse, because of humidity. 4+ a/c units and dehumidifiers cost money as does running them.

also, id rather be in a black neighborhood then a white trash tweeker haven ANY DAY.

 

[DeRail640]

YES 26k IN CALI. I got it in one of the larger cities in Cali not in Sac the bay or LA but in the valley. all has been quiet for the past 6 months with no problems in fact most of the neighbors stop by and thank me for fixing up this old house and improving the neighborhood. I have a buddy that works for HUD here he gives me leads on other properties right now there is a 2200sq older home on 1.5 acres for under 45K if anyone is interested. just 2 miles out of town with a basement

26k in cali?

 

[supermanlives]

man i need a basement. got my pad 98,000 12 years ago . now worth 350,000. great neighborhood walk to anything within 5 minutes. cool non smoking neighbors that are ok with medical mj

 

[spunion]

I live in a $100k house with less than 700 sq ft in CO, pretty much all Hispanic families and a few blacks here and there, I'm pretty much the only white guy. That is in Denver though, if you moved to CO Springs or even Pueblo houses would be a lot cheaper.

Went to HS in NW IL and I remember a guy my older friends knew that bought an old house for like 25k, that was in a town of 6k people where you'd have to be extra careful since the cops have nothing to do.

 

[rogerw]

Wow median house price in my part of the bay is 850-900k. Im assuming this isn't a med state? Id love to know some depressed areas in Cali/Colorado.

I just bought 80 acres with a 2153 sq ft 4 bed 3 bath 4 yr old house with 2 stall attached garage a 35 by 80 ft pole shed in southern co. for 100k. With all new appliances . All I have to do is move my stuff in and will be by July. I am retired so no need to drive to work and plan on raising a few head of beef and some chickens along with fruit trees and a veggie garden. Bought the ol lady a new pressure cooker and looking at dehydrators . Fuck paying whore house prices for food.

 

[funkervogt]

As someone who lived in the shittest part of Detroit: don't buy a house there. Ostensibly, houses in rich suburbs are not ideal because of cost and nosey neighbors. But consider this: my neighbors were the nosiest motherfuckers in the world. Everyone knows your business, and everyone knows when you come and go. There is no privacy in places like that, so you'll quickly be fingered as doing something fishy. All it takes is a few dudes poking around the property to figure out what you're doing, and rip your shit.

My advice? Buy property out in the middle of nowhere MI. Michigan has lots of wide open spaces with power hookups and run down houses. Just buy one of those instead. You'll never see your neighbors and nobody gives a shit what you do.