Lower CoC vs higher CoC?

[Greg Todrank]

Newbie questions.  I'm analyzing 2 properties as serious contenders for my first deal (long term rental).

Would you pick a lower CoC in a "better" area or a higher CoC on a "lesser" area? Neither area looks like "Escape from New York".

Are there considerations on triplex vs duplex or is it just a simple CoC consideration?

Thx.

[Erik W.]

Depends on your goals: cash flow today, appreciation, buy and hold, improve and flip, etc.

As for me, I'm a "Class C" investor.  I define Class C as "clean, safe, and functional", but possible some items are dated.  I don't upgrade kitchens and baths every 10 years, in other words.  The neighborhood is not a war zone, but may be moderate crime rate.  These properties do not appreciate much, but they throw off very good cash flow after all vacancy, operating expenses, and reserves.  Some of my best cash flow are SFHs, because few owner occupants are buying those, and investors often go after the small MFs.  Less competition = better price at the purchase, but lower sale price on the back end.  A worthwhile trade for me to be able to cheaply and easily acquire these items I call my "little ATMs."