What is a bad location when buying a investment property?
These signs mark an undesirable neighborhood:
1. Overcrowding of buildings with people.
2. Overcrowding of land with buildings.
3. Poorly planned land use.
4. Lack of public facilities and services.
5. Lack of adequate shopping facilities.
6. Gang activity.
7. Lack of convenient transportation.
8. More than one structure out of every five in a state of severe deterioration.
9. Evidence of disinvestment.
Disinvestment is a complex process involving property owners and bankers who decide that the return on a particular building or area is no longer worth investing more money. This leads to a reduction in services, the physical deterioration of the building, and often to its abandonment and eventual seizure by the city for tax
delinquency. Arson is often a quicker solution.
10. Rent control.
Congress once authorized rent control in all defense-rental areas. Because rent is the largest item in most people's budget, high rent and threats of eviction contribute to labor discontent. Rent control tended to reduce labor turnover and thus contributed to worker
productivity. Even in peacetime, the Law often fixes maximum rentals.
