Do not, under any circumstances, buy real estate options on properties in areas that are perceived by the public as being bad locations. Keep in mind that when you buy an option on any type of property, you are also buying the neighborhood in which it is located. For example, here in Tampa, there is an area around my alma mater, the University of South Florida, that is derisively called Suitcase City and frequently featured on the local six o'clock news because of drug busts, carjacking, rapes, burglaries, and other violent crimes. Suitcase City is made up almost entirely of small residential rental properties, housing tenants who receive rental housing payment assistance under HUD's Section 8 rental program. Many of the rental properties located in Suitcase City suffer from gross mismanagement and can be bought at bargain-basement prices! However, because of the public's perception of Suitcase City as being a bad location, I have steadfastly refused to buy an option on any property located there.
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