Buying cheap property (condos) in bad neighborhoods
I've been thinking about buying a cheap condo in a(for lack of a better word) bad neighborhood, and renting it out.
From what I understand about the demographic, the tenants tend to be long time renters.
Now, I am as ignorant as they come in the real estate world (at least compared to many of you here), but if I were to break it down on a monthly basis,
Rental income > (maintenance fee + payment). Now not by much, but rental income is still bigger....
These condos go for pretty cheap. Downpayment shouldn't put a huge dent in my savings...And due to its price, the payback period should also be relatively low for me
The only reason I can think of that justifies their relatively cheap price is the 'bad neighborhood", which I guess might lead one to assume that collecting payments can become a difficult task.
Have any of you been in my shoes? I'd love to hear what you guys think. I am located in Canada, but would love to hear from US people as well.