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Updated over 5 years ago on . Most recent reply

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Ryan Lepage
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Low end rentals bring low end tennants?

Ryan Lepage
Posted

Hey guys I'm looking at purchasing my first rental property. My dilemma is that I cant decide between buying a lower end property in a not great neighbourhood, or spend much more in a better area?

Option 1 

Purchase price 80-120k

potential rental income 800-1200/mo

Option 2 

Purchase price 200-280k

potential rental income 1200-1500/mo

My issues aren't  so much with the numbers per say but with the potential of bad tenants filling in the bad areas. I'm having a hard time trying to come up with a value for turnover and damages. Any help would be greatly appreciated.

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Aaron K.
  • Specialist
  • Riverside, CA
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Aaron K.
  • Specialist
  • Riverside, CA
Replied

Better question. What can you get in the $120k -$200k range, the middle class areas that are safe are almost always the best options. I guess in this case that would be option 1 and 1/2.

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