Where would you buy properties?

[Leo Tsang]

Dear all BPers, I live in Central NJ. I am looking to buy my first investment property in the area. I struggle all the time where my first property should be. I would like it to be closer to me. However the housing price in the area where I am living in is relatively high. The next logical step is looking at the town next to me which is a college town. They have some good properties I could afford. The town statistics also show there are more renters than home owners. It is a good sign that I would find a tenant relatively easier yet the average rent is not as high as I would ask for. Then I see some areas where property prices are within my price range up in the north. When I look at town statistics their poverty rate is over 30%. It makes me worry that I would had difficulty finding a good tenant who would pay at medium rent and even worst s/he might not be able to pay or delay payment for months. My questions are: 1. For a rental property, what location criteria should I take into account? (am I just thinking too much?) 2. Is there a direct relationship with the poverty rate and the rent or frequency of delay payment? 3. Is crime rate a factor to consider when buying a property in a particular area? I also debating if the property should be an apartment/townhouse or a SFH. I love the idea of buying SFH such as duplex. In my town and where I would like to buy, duplex is not very common. Any advice and idea on it? Many thanks. New investor, Leo