Low Income vs Moderate Income Tenants

[Adam Ulery]

Hi BP Team! I was chatting with a Tax Attorney this week and explaining my plans for beginning in real estate investment. He asked me if I plan to buy low end rentals with lower income tenants or mid or high end rentals with middle/high income tenants. I said the latter, but didn't elaborate on why. He made a comment about me being more interested in long term investment vs. higher cash flow. The conversation moved on, but I was a bit confused by the comment. I didn't get a chance to ask him before we ended the conversation. Does anyone understand why he surmised this? Why would cheaper units tend to generate higher cash flow than moderately priced properties? Why would moderate to high properties be considered more of a long term investment?

Thanks in advance for answering what may be a stupid question from a newb.

-Adam