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Updated almost 6 years ago,

User Stats

28
Posts
9
Votes
Seth S.
  • Real Estate Investor
  • Around
9
Votes |
28
Posts

Best bet rentals (tenants?) during hard times

Seth S.
  • Real Estate Investor
  • Around
Posted

Hey BP!


I don't want to go speculating of a recession happening (if, when, how etc), but the question of what kind of rentals are better for hard times came to my mind while I was looking at different types of deals around the mid-west.

Deal 1: duplex in a decent hood (B-/C+) that averages rents around 650$ / month / door (cost of 110k)

Deal 2:  4plex in a good hood (B+) that averages 1100$ / month / door (cost of 380k)


Lets say you are faced with this scenario and could go for only 1 out of the two. Which one would you pick? 

My reasoning (flawed as it may be) is this: 

Deal 1: lower rent = higher tenant pool but lower quality. 650$ apartment would be easier to rent than a 1100$ one.

Deal 2: higher rent = higher quality tenants but lower pool overall. Harder to rent 1100$ apartment, especially in recession when owning becomes more affordable. Higher paying jobs are harder replaced (for the tenants) than lower paying jobs (could work at McDs and still manage a lower rent)

Thank you in advance, 

S.

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