Income Property Search Dilemma

[Calvin Kwan]

Hi Everyone!

I'm a newbie investor and starting the search for my first income property in Oakland, CA.  I'm been eyeing the West & North Oakland area where things are gentrifying and prices/rents are going up quickly.  I can afford duplexes in an up-and-coming area but the returns aren't too spectacular.  The potential seems to be there though.

I just chatted with my agent and she presented me with opportunities outside of my search area that are producing good returns, but don't seem to have the great growth potential.

As my first income property, do I go with the numbers that make sense, even though the area is less desirable, or go with an up-and-coming area where the current returns aren't great, but the potential is.  I'm also afraid of being priced out of up-and-coming area down the line, so I don't want to miss out.

Would love your thoughts!

Thanks,

Calvin