$12,000 a month carrying cost and only asking $5000 rent. I’m sure this place would be safe for you to visit at night at a loss of $86K a year. Maybe getting mugged in the ghetto would actually save you money.
I’m not interested in being a slum lord. Family-oriented or not, it’s a poor neighborhood with a lot of drugs around, and has been for decades. You’ll be lucky to get reliable tenants there, and there’s also the possibility you’ll end up with several illegal families living in your rental, so be sure to count out two or three months every year for vacancies and cleanup/repair. Maybe you would profit over time, but I don’t need the headache.
Temecula houses in nice areas are penciling out as cash flow positive, and will be even better in the fall and winter.
