I have just learned through a conversation with city hall that a portion of my

target neighborhood is going to be involved in an eminent domain buyout at some

point and it will be rezoned as light industrial. They cannot pin down a time. It

could be next year, it could be 10 years out. The area is low income with average

sale values at around 50k.

I am looking to make my first purchase and there is a 2/1/5 valued at around

60-65k that I can buy at $52k that is currently rented Section 8 that will cash

flow around $125 right off the bat. I don't have much working capital and my

initial thought for this property was to hold and rent it until the market looked

better. This property is in the buyout area.

Thoughts? Experiences?

Thanks.

Do the numbers and if it's something you think is worth investing in, go for it. Don't even think about the eminent domain part for now since nothing has been finalized and also if it was a case of eminent domain, they might just give you fair market value (which is what they probably will do). With the value of the house only between $60-65K you have to think if it's even worth the small gain to you.