For Buy & Hold investors: Why not just buy a good quality home at regular price?

[Morgan N.]

I must not be seeing eye to eye with many investors added with the fact of how new I am... but here it goes... I'm into buy and hold properties and I'm thinking of making my first purchase soon. The thing is, I know that purchasing and financing a home for a really good (cheap) deal is always a plus. But when it comes down to it. Isn't just buying a good quality (year and built included) home at normal price and renting out for a monthly cash flow a good thing too? Instead of waiting for that one deal that could take months and months to get. Why would it not just be a good idea to pick from the plenty of house on the market at average cost and make sure you cash flow from the rents for the next 20 years? Wouldn't this type of thinking result in you getting even more homes and even more cash flow?

I have read how important cap rate is since it deals with your rental income and overall home price. And of course I know that buying a cheaper home would allow your tenants to pay off your mortgage a lot sooner too. But are their any investors out there who just aims for homes in a great neighborhood with great rental potential and just go for it?

I am currently trapped between two homes. One is close to where I work (about 25 mins from where I live) that's built in 1969, 3bed/2bath, half brick half wood, huge 11k sqft back yard, older but safe neighborhood currently on rehab from a guy who bought it from the owner and a agreed to pay remaining taxes on the house. The rehab guy is asking for 94k. And then there's a house right next to me (built in 2004, all brick) where I'm staying which is also a 3/2bath, average 6-7ksqft lot. but costs probably about 140-150k. I assume the rents are just proportional when compared to each other. so the cap rates may be similar.