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Updated almost 5 years ago,
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.