Low Income Properties VS. Nicer Neighborhoods

[Zamir Kazi]

I am currently investing in low income neighborhoods, finding it is easy to get 20% on rentals through regular renters and Section 8. What I have found however is that my Section 8 tenants are dream tenants, as most of them will follow all rules and keep their places pretty nice so they do not violate rules and lose their Section 8 voucher.

The ones who are not on Section 8 however it has been a revolving door. Even though they sign a lease it seems like it doesn't really mean anything to them. Even though those units are Section 8 approved, its just hard to get Section 8 renters in as there are many locations for them to choose from and it seems like every landlord is fighting to get one.

Also, I have noticed that although there are very high ROI, the appreciation in these areas are non existent. Also, I have started to begin questioning the ease of liquidation if necessary in these areas. The low-income investment for me has not been terrible. Just noting some difficulties. I have owned these properties for over one year now and have netted $60,000 off a $300,000 investment.

Would it be better to invest on something in the future which has a lower ROI but a higher appreciation in a better area?