Investing in low appreciating markets
Hello everyone,
I recently sold a duplex that I flipped after two years and then sold a live in flip single-family house. I am now looking at the long-term and building a portfolio over the next 10 years. Within a 30 minute drive there a properties selling between $80k-$200k. The low priced properties are obviously intriguing especially because they will rent for $500-$800/month. The downfall is that the area has not appreciated compared to other areas within a 30 minute drive (which have higher prices.) For example, a property is listed for $150k and the owner has owned the property for 15 years which he purchased for $125k. The area is not high crime - it is a rural blue collar town that has a good industrial park for people to work. What are everyone's thought on appreciation? Is it icing on the cake since the tenants will pay down your mortgage? Or should I pay more for a property because its in an area with higher appreciation?
Thanks everyone!