Comparing cashflow in Michigan and Florida

[Nick Yates]

Helloooo Bigger Pockets! I hope I am posting my question in the right place. Have done some reading and haven't quite found the answer. I am not sure there is one answer but rather perspectives on this question. 

I have found two properties in two different cities we are looking at investing in: Detroit and Jacksonville. The Detroit property costs $55,000 and the Jacksonville $100,000. Both have very similar monthly cashflows. 

On the surface it would be obvious that I am spending twice as much for the Jacksonville property to get the same monthly cashflow. So my question is, what other factors would investors want to be strong in order to purchase the more expensive property? 

Looking forward to discussing this with you!

[Toby Mims]

Since you are only 30 minutes from Detroit, you have the advantage of being close to your property. This is an advantage. If you buy the Jacksonville property, you will need to make sure that you interview several property managers and choose one that fits your needs the most. 

Also, what type of neighborhood are you looking at in Detroit? There are bad areas in every city, and I trust that you've done your research on the location of the Detroit home.  Jacksonville has bad areas as well, so the same will be true down here as well. 

I am looking to get my second rental home in the Jacksonville area in the future. I do have a few property management names and numbers if you need them.  Happy Holidays! - Toby