As real estate investors, we’re always looking for a great deal, a way to make a profit on the properties we purchase and then either rent or resell. But do you have limits to which areas or communities you’ll invest in? Have you bypassed certain areas because they are too poor and, therefore, pose too much risk?
Charlotte Street in the south Bronx (NY) was all but forgotten in the 1970s. Just blocks from the original Yankee Stadium, Charlotte Street was dubbed “the worst slum in America” by President Jimmy Carter. Landlords would start fires in their properties to collect the insurance payouts when they couldn’t find renters; other fires were set by drug addicts; and even some tenants would set fires in hopes of getting nicer apartments.
But with the persistence of one woman, Genevieve Brooks, Charlotte Street is now a thriving community full of single family homes and nice cars. Even though the homes were highly subsidized, each potential buyer went through a strict credit check and homeownership counseling. This process has helped prevent all but one foreclosure in the community.
Think it’s impossible to help a poor, urban community become a thriving community? Check out the before and after photos of Charlotte Street. There might be a similar type of neighborhood in your area that could use this same type of rejuvenation.
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