I’d like to get your opinion. Want more articles like this? Create an account today to get BiggerPocket's best blog articles delivered to your inbox Sign up for free Is price everything? Also, how much of a role does location play for a real estate investor? Let me explain. Several years ago, I was presented with an interesting deal to consider. The property's numbers were greatâ$97,000 for six units, average rent at $475 per month, which following the 50 percent rule left $1,400 for a mortgage paymentâplenty to cover the loan payment and provide substantial cash flow. The property was in need of some cosmetic renovations (paint, landscaping) to make it look less "scary," but I'm never worried about getting that sort of thing done. Additionally, the county assessed the property at more than double what was being asked. However, the property had one problem: B Street. If you asked anyone in my area where the “slums” are, 99 percent of people would say the same answer: “B Street.” B Street was a small neighborhood where homes were generally the cheapest and primarily used as rentals. The six-plex, while not located at the worst place in this neighborhood, was still located in one of the most well known “bad” parts of my county, on a busy street near some warehouses. After considering all of this, I didn’t know what to do about the property. I had never bought in that neighborhood—but the numbers made perfect sense and it fit my standards from a math perspective perfectly. But was that enough? Location, Location, Location, Price? I’ve often heard investors say, “Never buy a property in a location you wouldn’t yourself live in.” I don’t agree. I think there are a lot of places that I wouldn’t want to live but would be fine for most. I would never again want to move into an apartment (I don’t think they’d appreciate my cats…), but it doesn’t mean I would not buy one. I also wouldn’t want to live in certain areas of the county I was describing—such as B Street. But I don’t think that should be the primary reason for avoiding a purchase. Related: Should I Buy These 80 Units? Would You? And then there is the issue of safety. Do I feel safe in said neighborhood? Would I feel safe talking to tenants, showing units, or performing maintenance? In this specific instance, I did. While I wouldn’t leave my truck tool box unlocked and parked overnight, I didn’t feel like I was going to get mugged by simply being there. And Then There Is the Issue of Tenants… However, the major reason I was hesitant of purchasing in that location was not because of the location itself. I was concerned about the quality of tenants I would be dealing with. With the risk of offending the politically correct in our society, (well, here I go) I believe the lower-income tenants often come with significant more hassle than that of higher income. Now, I’m not saying lower income people are worse. I’m simply saying that they bring with them certain problems not often seen in higher income properties. Let me clarify even further. A good friend of mine owned a small rental property near the one I was considering. He often hired me to answer phones and show units when he was out of town. Because his units were so cheap at the time ($395), the location and the unit mix (usually studios or one-bedrooms) attracted a certain type of tenant. The last time I helped him rent one of his units, I took over 50 phone calls in 36 hours. With each call, I explained the property and qualification standards over the phone (as to not waste anyone’s time). Out of those 50 phone calls, about 20 said they wanted to see the inside. I generally schedule as many showings within the same timeframe as possible to eliminate hassles and hedge against no-shows. Of the 20 who made appointments to see the property, only 10 showed up. Of those 10, only two qualified and one was interested. Related: How to Use Price-to-Rent Ratio to Analyze a Location Despite explaining the qualifications over the phone (including minimum income requirements), the other eight still showed up. The other 10 were simply no-shows. At least half of those who showed up made less than $400 per month, and all of that income was entirely from government assistance. I honestly don’t understand what they were hoping for. They don’t even make enough to pay the rent; some even had the nerve to ask if they could make payments on the first month’s rent and security deposit. This was highly typical for his property and probably a good indicator of the future of the six-plex currently under consideration. Again, I’m not saying this doesn’t happen to higher-income properties. In my experience, however, the wasted time and headache in dealing with tenants around “B Street” was vastly higher than other areas. So What Would You Do? Maybe you’ve been in this situation before. Maybe you’re in it now! This blog post was a bit different than the normal ones, but I think it’s an important issue for every real estate investor and one that we all will face time and time again. So, I want to open up the floor to you all. What would you do? Is price everything? Would you buy it? Why or Why Not? Please leave a comment below and let’s have a conversation.