Buy and hold % question

[Glen Nash]

Hello all, n00b here from Louisville KY. Excited to be getting in the game. Quick question to the crowd. Would you rather be in a D hood at 2.5% or a C hood at 1.5%.

Thanks for all the help in advance - Glen :)

[Erik Hitzelberger]

Glen, 

This is largely a personal question. The answer is a function of your goals and your resources.  If you want cash flow now, the D prop may work (although 2.5% of $50 is roughly the same as 1.5% of $80).  In my experience, D properties require a lot more management. If you don't have a property manager, make sure you account for this extra time when you do your analysis. 

I am more interested in the long term. Thus, I'll accept less cash flow today in exchange for less maintenance, better houses, and better tenants.  Lots of people here in town, choose the other route though. You can be successful either way, you just need to have the right expectations. 

Good luck!