~50% Rentals / ~50% Owner Occupants

[Daren H.]

I am thinking about purchasing a rental property that is located on a street that is about even with rentals and owner occupants. The particular street is lined with these smaller (~1100 square foot) almost garden style SFRs but is part of a larger subdivision with slightly more owner occupant, traditional style, and slightly larger homes (~500+ more square footage) after you get past the smaller ones. The area is not bad at all but you can tell it has the rental property vibe, lol. This would be a long term rental and I would not be expecting much in the way of appreciation. What are some of the other major down sides of buying in these type neighborhoods? Like most, I prefer more owner occupant neighborhoods.

The top value at best of the smaller homes (ranging from 1100 sqft - 1300 sqft) is in the ~$90k- $95K range in my estimation but this is not really a factor. This particular unit is occupied with a 3 - 4 year tenant and rented at $1,000 a month (but should be renting for ~$1100 or more based on my research). This unit was built in the Mid-90s and is a 3 bed, 2 bath, 1 car garage compared to the 2 bed, 2 baths that are renting for $1,000.  Currently under contract at $73K but inspection is planned (more negotiation could follow). Property is located in Duncanville which is part of my area (southwest Dallas County). Completing due diligence this week but neighborhood split makes me think what am I missing longer term?