To buy or not to buy... HELP!!

[Linda Salavarria]

So...I got a little money from an inheritance and was thinking about buying a small house in the Phillipsburg NJ area for under $100k (cash) to live in, renovate some, and rent. If you're familiar with the area, it's becoming sort of "hip" with it's proximity to the Delaware river, Easton, PA, outdoor activities and a few colleges. I've visited the area numerous times with my kid to the Crayola Experience and I kinda liked it. It's scruffy but so was Hoboken, Jersey City and the Lowere East Side 20 years ago...

I have purchased real estate before and I totally SUCK at determining location. I sold one townhouse for 4K profit - covered buyer closing costs to sell the damn thing, and the other townhouse I had foreclosed in 2008. Value on that declined over 50K, couldn't sell or even rent.

So the question is, might this area be a safer bet? Should I looking start now OR should I wait a bit to see where the market goes. Again, I prefer to do a cash purchase so I would only need to pay the taxes and utilities while living and renovating any house - no mortgage. Would LOVE any input or opinions. Thanks!