Sometimes that's so and sometimes not. I don't believe you can generalize like that. I've seen "bad" locations that never seem to fully appreciate and buying in and investing money doesn't get a return.

If one possesses the skills to venture into the world of your suggestion there be opportunity there guaranteed. I have long managed property in undesirable areas and it pays. As far as location premium goes, yes you will over-pay but right off the return on the quality of life is instant and then over time the return on investment is apparent...

I like to sell in a good area but sell the worst home in the area not the most improved... 

That's correct for residential, and there are areas of LA that were 'ghetto' and now have been regentrified into the hippest communities.

That is NOT correct for many commercial properties. If you are gonna run a 'to the public' business, site is critical! And if a business can't thrive there, the income potential is very much limited. 

Even if it is industrial or manufacturing that is not a 'walk in business', location is still important, albeit for different reasons. 

So L3 IS a thing . . . but it depends on the 'who' and the 'why'!

Real estate is local.  There is power when you master local.  

Good luck with that Mott Marvin Kornicki although I can see it working well if you want to open up a crack house chain.

People need to buy where they can afford. Location is just one factor to consider.

Yikes, not me. There are many areas going thru gentrification. The investor can use your insight as to where the next hot neighborhood will be.

Location is always important. Drilling it down by county, city, neighborhood, location in neighborhood. Then benefits from there.

An investor would be benfitted more by buying in San Francisco vs. Miami. I've never heard Miami being any kind of real estate hot spot.

It's still about location, you're just aiming for a "redevelopment zone" versus a ritzy hood.

The sad thing is i see over priced homes in all three areas, the good, the bad and the ugly

In our market location is a big part of the home buying process.

Location is still important in my area. We're not over developed. There's still plenty of land to build on. While the best locations are too expensive for some, it isn't for everyone. Having lived in Orlando I learned a lot about growth and watching where it is going. When we moved here we still had farms in town. I knew they'd go the way of development just like the orange groves did when I was a kid. Now, I think it is about knowing what is happening in the big picture. We're a big relocation area and will probably stay that way. Knowing where the jobs are is important. Knowing what future generations are doing is important. For example, baby boomers and many gen X wanted the big mcmansions. Millennials and Gen Z do not. The large homes are harder to sell right now. Baby boomers and millennials are buying similar sized homes in our areas. Schools are important in our area so buying an investment in a good rated school area will bring good tenants. As growth sprawls, schools that may not be top rated today, may be in 5 years. You have to keep in mind millennials are having less kids. Then again, Gen Z is supposed to be larger than the baby boomer generation. So, there is a lot that goes into the equation for our area. 

Location is always a factor.  A LOT of research and analysis needs to go into your strategy.  

Location is only part of the formula, more important to buy the right property, buy it right, make the right improvements and either get it rented quickly or flipped quickly.

I agree that real estate talk is often about generalities. Actual buying and selling has to do with specific properties each with specific circumstances surrounding them. Location, is just another factor in the equation of determining what property is going to help the buyer reach their goals.

Agree. 

Most of my clients were buying or selling a primary residence or second home. Unless they were selling in a neighborhood as you described, they wanted to buy in the best neighborhood they could afford.

I would most trust Joe Pryor's opinion on this topic! 

However, I can tell you that here, the investors who lost the most when they sold during the recession, bought in those very areas you described as 'worst.'

You are still talking about "location"...just that the location has potential that has not yet been realized. 

Location still tops the list here...everyone wants on the beach, whether it is direct ocean, riverfront or canal.

Buy cheap - rent high.  
that would be an ideal investment. Area does not matter 

Sometimes yes and sometimes no. Many areas of Chicago are to be avoided at the present time.

If you buy the entire neigborhood and pump it up, voila... great investment. Instead of the three L's though... it is timing, timing, timing. The property can be in a whiz bang location but if the buyer is not in a position to buy... that is not your buyer. Find people who are ready to pull the trigger to buy... that is a big chunk of the time we spend on the hunt in real estate follow up right Mott Marvin Kornicki ?

The best deals are in these undesirable neighborhoods. But why is that? Because the location is not good and may be harder to sell.  The money to be made is probably not as good.  I let the investor decide where to spend his money.

Rules are not always reliable standards.

As with many things: It depends. 

There is upside potential everywhere. There are also various forms of risk, not all of them financial.

I would never invest or work in an area where I didn't feel safe now.  How could I properly maintain and manage a property I didn't feel safe going to?

Mott,

Those are good concepts, and there are no absolutes.  A

I would want a good location to call home. Somebody else may want underdeveloped for their needs. Location is subjective.

I agree, never had anyone ASK to live on a busy highway!  

There are always places that are going on sale that have great location, you just need to work it right.

It seems these days granite counter tops are more important than location.