New to Real Estate and looking for advice on first rental propert

[Gary Layden]

Hello Everyone! I'm Gary from Erie, PA. This is my first post here. I'm new to the real estate game and I am now looking into purchasing my first rental property. 

I am currently looking into 2 different 4 unit rental properties and need some guidance on which way to go. The first one is $45000 and brings in $1600/ month. Can almost pay all cash, bad neighborhood (crime), low property value and needs some maintenance. The other is listed at $145000 and brings in $2500/ month. Need loan, nice area and is updated nicely.

I'll get a better return on my money for the cheaper property, but is it worth the headache of bad location?

Thanks,

Gary 

[Anthony Angotti]

Originally posted by @Gary Layden:

Hello Everyone! I'm Gary from Erie, PA. This is my first post here. I'm new to the real estate game and I am now looking into purchasing my first rental property. 

I am currently looking into 2 different 4 unit rental properties and need some guidance on which way to go. The first one is $45000 and brings in $1600/ month. Can almost pay all cash, bad neighborhood (crime), low property value and needs some maintenance. The other is listed at $145000 and brings in $2500/ month. Need loan, nice area and is updated nicely.

I'll get a better return on my money for the cheaper property, but is it worth the headache of bad location?

Thanks,

Gary 

Hey Gary,

In my opinion the extra cash isn't worth the headache. Get better tenants and make money doing less rather than working way more and managing bad tenants and a problem property. All depends on what you are willing to deal with though. Some people make a lot of money in lower cost C/D property.