Beyond the initial capital outlay, what are risks of buying for speculative investment homes in areas early in their regentrification stage? Online I'm seeing 100 year old houses on 2000 sq ft lots in bad neighborhoods selling for around $1000. They are within view of major commercial and residential redevelopment that is kicking off. The upside is intriguing, even without being rented out (I don't wish to become a slumlord). What are the downside risks? I imagine insurance is prohibitively expensive, leaving the owner at risk in any of a number of legal issues, such as personal injury claims. What else?