Buying First Property: In an A school district?!?

[Kelsey Folger]

My husband and I are trying to buy our first rental property. We live in a very popular market in the Midwest where there is a lot of competition for buyers. Is it worth it to pay a premium in a A- neighborhood in order to (hopefully) secure long term tenants and less headaches overall? 

Property: unlisted duplex, $190,000

Split utilities

2/1 on top, 2/1 on bottom.

Expected rent (according to current owner) $800 and $950, respectively. 

Home is an old farmhouse on a 1/3 acre lot in a safe neighborhood with great schools. Unknown at this time if the house needs repairs soon such as a new roof. Currently is owner-occupied. 

[Cassi Justiz]

It depends on your goal with your rental. Higher end properties don't always cash flow as proportionately well as some lower end properties. But it is your own risk tolerance level that you will need to look at. If you are more comfortable with properties in A class neighborhoods and can make the numbers work for your goals, then go for it. 

In some places, multifamily properties are not as desirable as a single family home. So that could be a factor in your tenant longevity. If it's in a good area and you're competitive with your market, finding renters shouldn't be an issue.