Smaller building in nicer area or more units in average area?

[Alan Eisenberg]

I am looking for a multifamily property to purchase. My question is this- I have 1.5-2.0 million to spend but I am wondering if its best to purchase a smaller building in Boston, Ma Miami, Fl or nicer area lets say 5-7 units or a 20-25 unit in Manchester, Nh or Albany, Ny. Obviously a lot goes into this but Im thinking longer term and which will appreciate more and which I should make more money per year and have less evictions etc. 

[Charles Soper]

With our red hot economy due for some kind of correction, going bigger might be better for the simple logic of sustainability.

If you buy a nicer 6-Plex in a nice area vs. a working class 30 unit with lower rents in a decent stable C neighborhood what happens when you get a vacancy?  3 vacancies in the 6 Plex leaves you at 50% occupancy, can you cover the note and all your expenses if that happens?  How about 3 vacancies in the 30 unit?  90% occupancy, that’ll definitely cover the note and expenses (assuming you bought right).

Nice might be right for you’re choice of living conditions, but not always the right choice for your investments.