Business model ideas

[Charles Terrizzi]

I am torn in how to start (not to be confused with analysis paralysis, well maybe a little) 

Input is welcome on these lines of thought:

1. Should I seek the nicer areas of town to buy single family rentals and keep them above average nice/bordering on really nice....this idea is that I could get better tenants and lowering my pain is of course the goal here. These types of homes around here would cost $150k and have the best schools and possibly could get tenants from the several military bases, increasing tenant accountability. .....Is this line of thinking good, and will it likely provide better tenants and a better overall success? Possibly?

or

2. Buy very cheap homes in my area, avoiding the worst areas, which I am fairly sure I don't want to venture into....still fix them up nice, not super nice ....and get pretty decent ROI (I would think) but then I would also think I would have to deal with more turnover or tenant instability....I am really thinking in this direction, as I could buy with cash and avoid financing.

Seems like the lower end would actually be better, as rents are not low anywhere around here, and they don't seem to go up proportionally for the nicer homes. The only question is, is the value of having nicer properties worth it? There are many ways to look at it, I reckon. 

My wife will go insane if I talk like this to her, so you are my sounding board.....she's not the business type.