How I Ended Up Owning a War Zone Property

Real Estate Investor Goddesses Podcast

How I Ended Up Owning a War Zone Property

This was one of my first multifamily investments. I was looking for a C-class property (working-class area) with value-add potential—a place I could renovate and improve.

The property was in Albuquerque, New Mexico, in an area once called “The War Zone”—a huge red flag I ignored because:
✅ A new Starbucks and Planet Fitness had been built nearby.
✅ A neighboring apartment building had been renovated and was getting higher rents.
✅ It was across from a major hospital, suggesting potential tenants.

On paper, it looked like an up-and-coming area. In reality, I had stepped into a nightmare.

🚨 Shooting Before We Closed – The night before we bought the property, there was a shooting on the corner. Weeks later, someone shot into the building itself.
🚨 Fires & Crime – Two fires broke out in two years. Our property manager was held at gunpoint.
🚨 Drugs & Homeless Encampments – One vacant unit was broken into; inside, we found hypodermic needles and rose petals—a disturbing Valentine’s Day scene.

Despite spending thousands on security measures, crime remained rampant. Tenants left. Rents didn’t increase. The property struggled.

I was desperate to sell. Then, a miracle happened—our property manager introduced us to a 1031 exchange buyer willing to pay our price. We escaped with a small profit, but pure luck is NOT an investment strategy.

I relied too much on surface-level signs (new businesses, neighboring renovations). Instead, I should have:
✔️ Checked crime reports—not just overall rates, but violent crime trends.
✔️ Spoken to locals—tenants, business owners, and residents.

A neighborhood can feel safe at noon, but turn dangerous at night. Visit at:
✅ Morning, afternoon, and evening
✅ Weekdays and weekends

I relied too much on brokers, who were motivated to sell. Instead, I should have consulted:
✔️ Local real estate investors (at networking groups)
✔️ Property managers who work in the area

Areas with good schools and strong job growth attract stable, long-term tenants. War zones? Not so much.

We planned for long-term rentals but considered short-term and medium-term hospital stays. However, even the hospital didn’t refer tenants because they knew the area’s reputation.

We switched three managers before finding one who could handle the crime and tenant issues. In tough neighborhoods, you need:
✔️ A no-nonsense manager who enforces rules
✔️ 24/7 security measures

Some investors thrive in war zones, buying cheap, dealing with high-maintenance properties, and flipping neighborhoods. That’s not my style—and I learned that the hard way.