Now I am a little biased because right now this is my niche and my strategy, but this is my pros for investing in lower-priced properties.

1. An easier barrier to getting into the property

2. Lower risk, I mean money is involved but you will not lose as much if things go wrong.

3. Because of the smaller purchase price (and you still do your numbers for rehabs), you should have a greater cash flow each month because it's less debt you're paying back.

4. A greater ability to scale because you can buy more homes because of the pricing.

5. Honestly less competition from experienced investors because the more experienced investors usually go for more appreciation (nothing wrong with that).

6. You have a greater impact on a particular neighboorhood, block, community.

7. Because of some of the challenges be it neighborhood, tenant base, and all other things associated with investing in the "hood" you learn a lot faster (because you hopefully are buying more and because you have to deal with multiple issues, that will help prepare you for the greener pastures of real state.

Cons

1. Properties do not appreciate at the rate of the more expensive counterparts (in less gentrification occurs).

2. If you do not have the personality or find the right management to deal with the people and issues that can occur in those communities you will get eaten alive.

3. Because it's easier to get into more people can get into the business, some of which probably should not be involved in real estate.

Now I know the biggest rebuttal on this is going to be on the wealth-building aspects of appreciating especially over time and those things are true, but if you cash a lot and you reinvest you can create that same wealth with that strategy as well. Also when it comes to appreciating the market is the only variable that will ultimately decide the appreciation and you only realize the value once you take it out through refi, HELOC, borrow against (Collateral) or sell. Otherwise, all that great appreciation is just sitting there.