If it is not broke...

[Stephanie D.]

Hi -

I have four rental duplexes - one in Northeast Philadelphia and three in Delaware county.  My tenants in Philadelphia have always been late on the rent and keep the property in a nasty condition.  These are the main reasons why I am leery of purchasing another rental property in Philly.  However, I would like to invest in another property since the real estate market is improving.

My tenants in Delaware county pay their rent on time and keep the property in decent condition. I have no issues finding quality tenants in Delaware county.  The main problem I have with this area is the property taxes.  They are increasing over 4% each year.  My property taxes are 45% of my total monthly mortgage.  I am looking to purchase another property, but I am concerned with having majority of my rental in one township.  I think it's best to diversify my book of rentals.  I mean, what if Delaware county decides to significantly increase their property taxes? This would drastically affect my finances. 

Am I thinking too deep or should I just purchase the property and stop worrying about things outside of my control? I would appreciate any input!

Thanks,