Is there a sweet spot when it comes to the price of rent?

[Charlie Shew]

Hello Everyone,

So let me try to explain this. Is there a logical way to determine what would be the best amount to spend on an SFH based on the amount of rent, risk and return on investment? For instance, if I said I was going to purchase a 5 million dollar home for my first rental property and all the numbers worked, most, well, everyone would say don't do it! There is not a market for that. On the other hand, if I was going to purchase a $30,000 home and the numbers worked most would say it's not worth the type of tenants you would attract.

 So how do you determine the sweet spot in a market? 

Charlie