[quote=AN]So you think places that has dropped 50%+ from peak and are at ~2000 nominal price is a worse investment than a house in NCC that’s west of the 5? I beg to differ.[/quote]
AN, I can’t go around and around about this, but you still gotta sell that property someday that just sunk to +-2000 lows. What will it bring in 2015? 2020? What kind of profit can you make fixing it up and selling it as opposed to a well-located property in NCC west of the 5??
More fundamentally, why did its neighborhood sink to “2000 lows” in the first place?? Ask yourself that question before you make an offer. If you are buying for appreciation from “sweat equity,” then think twice before making an offer. If you are buying for cash flow and will never live there, then examine the local rents and if it cash-flows after PITI, then BUY IT! Bear in mind the calibur of tenants you will attract, because, after all, the ‘hood has “sunk to 2000 lows.”
A property in a neighborhood that has sunk to “2000 lows” is NOT a “keeper” in the way that sdcellar is referring to. It is a property purchased for rental income or a leg-up for a moderate-income first-time buyer family that needs a stable home for their kids.
