Finding good cash flow in a nice neighborhood seems impossible

[Mike Williams]

I have been searching for a duplex for about six months now. I have seen many properties that have a cap rate of 10-15%, problem is they are in pretty sketchy neighborhoods. For a better neighborhood it seems as if the initial investment is usually double and the return never that much higher. For instance a 60,000 dollar duplex rents out for about 400 a unit in a sketchy neighborhood versus a 140,000 dollar duplex renting out for 600 a unit in a nicer neighborhood. The cap rate has almost been split in half. Would you rather go for the nicer neighborhood with less cash flow? To me when buying in a nicer area I just can't seem to make the numbers work. Thoughts on this?

[Brandon Hopkins]

Are you trying to invest in your backyard? That's my problem in California, returns are poor. My solution was out of state investing.