paying +80K a door instead of 25K? why?

[Jonathan H.]

Hi guys,

Before finding this forum, I was so sure I was looking at good investment properties in the areas I was in (mostly populated downtowns in NE and NW). Then just yesterday, I saw posts on this site about 50K duplexes and 100K 4plexes etc. that brought in almost as much rent as the 200K duplexes and 400K 4plexes I had been watching.

This got me thinking about why some still invest in what seems to be less profitable areas? Or at least, pay a lot higher for properties, when the rents arent that much higher?

And I was only able to come up with a couple of reasons:

1 - Not wanting to invest in states or cities too far from home.

2 - Vacancy rates? Not sure if 2X or 3X the price per door is worth it. Was hoping someone would chime in on this.

3 - A lot more stable markets. Im guessing properties in downtown Boston, Honolulu or Seattle have a higher chance of retaining value than in smaller areas. (not sure of this. Just guessing).

I was just hoping some would like to discuss this with me.

Im in a position where I would like start investing, but am hoping for some consult on where (physically) to start.

All the best