Though there are no absolutes, you should have second and third thoughts about buying the worst house on the worst block.
Some folks prefer to be off the beaten path or buy in a transitioning neighborhood. And it’s true, areas can change rapidly these days. Once unsafe or out-of-the-way neighborhoods emerge as the next “it” spot. You can’t always predict which neighborhoods will change. And when real estate markets slow down, it’s often these gentrifying areas that feel it first.
If you’re comfortable challenging the status quo of the location game, buy a home that needs some work. As described above, you can build equity after making improvements. That built-in equity, plus the potential upside if and when the neighborhood changes, could equate to a great long-term investment.