When we did the research, we found that the newest neighborhoods out on the edge were the most financially insolvent. However, everything there is relatively new – they are in the Illusion of Wealth phase of their development cycle – and so, until something must be maintained, these edge neighborhoods are cash-flow positive. In contrast, the core neighborhoods – those neighborhoods that are very poor and blighted but also very profitable over the long term – have suffered from decades of decline and neglect. The infrastructure there is falling apart; the neighborhoods are desperately in need
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