Would you rather buy a couple homes in a lower end part of town?
Or buy one in the nice part or town?
Currently debating one which way I should go. Thanks!
More good houses .
You could probably get better cash flow in a lower end part of town, but better tenants and less complaints in a nicer part of town. Right now, I prefer nicer areas.
As the saying goes, buy the worst house on the best block. I prefer a safe area, doesn't have to be the best neighbourhood in town, but it does have to be a good family neighbourhood and some where that I'd be comfortable living.
If you want quality results, you need a quality product. If you want junk...
Problem with cheap houses is cash flow exceeds capex, but you won't realize it until you are five or so years older. It's fools gold and a waste of precious life time.
Well, I'm an experienced C/D-class landlord, so here's my answer:
If it was the right lower-end part of town (some potential for appreciation) and the right two homes (quality of construction, size, desirability as rentals) and I lived in that town (all my rentals are in the five-mile radius around my home), I would buy the two homes. But developing the skill set to determine which parts of town and which homes as well as the skill set to operate those two low-end homes as successful rentals, that usually takes a lot more specialized, dedicated work than buying a nicer home in a nicer part of town that you may or may not live in and successfully running it as a rental. And the specialized work I'm talking about doesn't always pay off.
If this were my first or second investment, no question, I would buy the nicer home in the nicer area.