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Updated about 5 years ago on . Most recent reply
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Low end rentals bring low end tennants?
Hey guys I'm looking at purchasing my first rental property. My dilemma is that I cant decide between buying a lower end property in a not great neighbourhood, or spend much more in a better area?
Option 1
Purchase price 80-120k
potential rental income 800-1200/mo
Option 2
Purchase price 200-280k
potential rental income 1200-1500/mo
My issues aren't so much with the numbers per say but with the potential of bad tenants filling in the bad areas. I'm having a hard time trying to come up with a value for turnover and damages. Any help would be greatly appreciated.
Most Popular Reply
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Better question. What can you get in the $120k -$200k range, the middle class areas that are safe are almost always the best options. I guess in this case that would be option 1 and 1/2.