Advise on buying rental property cash for rental income

[Rahim Kakar]

Hello everyone, 

I’m looking to purchase a condo unit in the Sacramento area CA. 

Would you recommend buying at the lower end in an area with section 8 renters and getting the rent guaranteed? Or spending nearly double for a nicer area and renting to non section 8 tenants? 

I’m planning on buying cash, long term (hopefully never sell)  just to create some cash flow. 

I like the idea of condos and paying the HOA fees so I don't have to worry about big ticket expenses in future or high insurance rates, but I'm open to advise.

[Theresa Harris]

With condos you also have to consider how they are run.  I've seen some where they are hit with lots of special levies for major repairs because the condo board didn't save up enough reserves.  Others are run better and have saved up for the major repairs and therefore you don't have the special assessments.