Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 11 years ago on . Most recent reply

User Stats

28
Posts
2
Votes
Augustin G.
  • Investor
  • Lockport, NY
2
Votes |
28
Posts

Better deal or better neighborhood? First buy owner occupy multi

Augustin G.
  • Investor
  • Lockport, NY
Posted

Just hoping for some input on this. I plan on making my first purchase within 12-18 months, going multi family route with a FHA loan, with my fiancee and I occupying one of the units. My question is, would it be smarter to go for a cheaper home (lower mortgage) in a neighborhood which would bring in lower rents and most likely a lower quality tenant... or would it be wiser to spend a little more in a nicer neighborhood where I can attract a higher quality tenant with higher rents? In the end I suppose the quality of the neighborhood is irrelevant as to if it's a "good" deal or not, this would be based on the numbers.

Anyone with experience going this route for their first buy who may have had the same thought process?

Most Popular Reply

User Stats

128
Posts
56
Votes
Susan Gillespie
  • Investor
  • Saint Paul, MN
56
Votes |
128
Posts
Susan Gillespie
  • Investor
  • Saint Paul, MN
Replied

Hi Augustin, if you're planning to buy and hold for a longer term, I would think longer term. Meaning: how will the neighborhood or location do over time? Is it generally holding its value? Is it mostly residential or rental? What is the neighborhood's demographic, who is living and renting there, how is the local economy?

I have only invested in stable neighborhoods and have been happy with the result. I go for quality over quantity. My most successful formula is to buy discounted/distressed properties and add value through improvements. I wouldn't want to make improvements in a neighborhood that I don't consider "improvable."

You'll have a huge advantage as an owner-occupant with finance options, taxes and possibly first time buyer incentives. Watch for positive cash flow no matter where or when you invest.

Best of luck with your search. I wish I had bought an income property when I was starting out.

Loading replies...