Question about buying 1 to 2 bed condos as investments

[Jerome Harrod II]

Lets say, you got a 30k to 40k cash buying power wanting to buy and hold something decent in lets say a B class neighborhood.
How do you feel about buying and renting out a 1 bed / 1bath condo or a 2 bed/ 1 bath condo? 

I know it depends a lot on your market, but I'm looking for someone's general experience or opinion.
Like did you find a tenant easily or did it take some real marketing to fill?  Or Would you only buy a property like that only if near malls or colleges? 

Anyone have experiences or opinions that answers questions like that?

[Dana Dunford]

@Jerome Harrod II- I know you allude to this, but it is heavily dependent on the market (I know that's not the answer you want to hear). Let me give you some examples, to show that it's not just as simple as college / mall is a good place to locate:

• College town: vacancy is in February ... you are less likely to get a college tenant until the summer season turnover (this goes with season argument)
• Price: If you are $100 - $200 below market rates, then it will obviously be easier to fill than one that is at market rate
• Industry: If the town/city is dependent on one industry, then it will be great when that industry is booming ... but not if disruption happens in the industry
• Macro-economic trends: If the economy is doing poorly, then being located near a mall makes no difference. In fact, you'll see all vacancies increase.

I always advocate to run the numbers. Great locations (college town, near a mall) tend to have a higher purchase price, which could make it a worse investment (if you can get a better deal elsewhere with comparable rental rates).

Hope that helps!