what's /biz/ think about buying the cheapest, old, decrepit,

>>1096267

As you've said, it's a risk. But moreover, consider the pain of dealing with tenets. The worse the neighborhood, the worse the tenets. Get ready to deal with monthly trips to small claims court over eviction disputes and always expect to have to repair shit once they leave.

The fact is that many neighborhoods will be shitty for the rest of your life, and coupled with the above cost, I wouldn't risk it. If you can get in on the ground floor of a new gentrification scheme, then that's a different story, but you have to have laser precision with that sort of thing--being just two blocks from the nice part of town doesn't make it the nice part of town, after all.

The problem is niggers

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>>1096286

>>1096285
i think you mean tenants

>>1096267

Well, let's do the math. Let's you put in, say $100k now, and expect to get $200k back in 10 years (optimistic). Let's also discard all the possible costs along the way, bills, taxes etc. That's a $100k profit if you're very lucky.

On the other hand, if you put your $100k into ETFs making an average of 8% per year, over a period of 10 years, you will have about 100k*(1.08)^10 = 215k with much lower risk.

Which option is better?

>>1096380

>inb4 rent

Renting your shithole to poor people is a shit idea because

1) it's time-consuming to deal with poor people
2) you have to make repairs regularly
3) you won't get paid half the time

The only respectable profit could come from selling the whole thing to an investor, but the validity of that option is questionable for reasons described in my previous post.

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>>1096341
Holy kek I looked at this and just assume it was a response to this post >>1096286.

If you are slick you can make money- I know a guy who bought an entire street during the 2008 crisis- bought houses in CT for around 30k. It was off a real bad street but he extended the street to the other side which was a decent neighborhood and closed off the part that went to the shitty street. He knocked down to the houses and sold the land to a developer. He made like 5 times what he put in. Had to have connections in the town government to do it.

>>1096267

Do not buy into the Canadian housing bubble. Just don't.

Wait 3-4 years, it might end sooner

>>1096267
Houses are for living in, not speculating on, asshole.
>hurr durr let me drive up prices even more

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>>1096509
>if you are slick
You mean
>If you have illegal government influence and massive starting capital with perfect timing in a historic market crash.

All these real estate stories of success are essentially lottery winners and the ticket costs too much for most people. Real estate is an awful investment.

>>1096380
don't you think 8% per year is quite optimistic too?

>>1096698
It is. 08 and 09 saw negative gain rates, people never take that into account. You'd have a 0% gains if you were investing from late 2007 to early 2010.

>>1096570
And people wonder why us millennials aren't buying houses anymore.

>>1096704
>You'd have a 0% gains if you were investing from late 2007 to early 2010

Yeah, and you'd have losses if you invested from 2008 to 2009. So what? We're not talking about a 2 or 4 year period here, we're specifically talking about long term (10+ years in the market).

>>1096341
Yeah, it was late and I wasn't exactly sober.