CDC's And The Single Investor
Locally, a local mall has been turned into a high-tech business park (well, with some setbacks) and a couple of CDC (community development corporations) have been working on the nearby neighborhood. The CDC is a non-profit, and is using its funds to provide "low-cost" housing in the area. Recently, one of the apartment buildings that was NOT targeted by the the CDC has come up for sale at what seems (on paper) to be a very reasonable rate. Looking at the numbers, before repairs, this purchase could provide positive cash flow indefinitely even at ridiculously low rent.
My question is this: Does anyone have experience as landlords in neighborhoods targeted by CDC's, and does the competition become a serious problem when operating for a profit against them?
In the past it has dictated the rentals in that area. Therefore it is competition, what you need to find out is if the CDC is providing rentals or selling the properties. That will dictate your competition level. From what you have said so far there will be newer job opportunities by the development end, so there may be enough rental income for everyone. It sounds like a good long term opportunity, just make sure that you can survive the development stages, like blocked roadways, construction noise etc. Aftter the development is done you may want to increase rents to accomodate the newer area, and then sell or just rake in the increased profit.
Good Luck,
Kyle