Is spending more on a better rental property worth it?

[Ryan Greenspan]

Hello everyone, I am relatively new to real estate investing. I have one rental property currently and am looking to add one more to the portfolio. 

My question is: Is it worth it to pay more for an all-around nicer, much more desirable property? I am really on the fence in regards to this issue. The more I think about it, the more it doesn't make sense to spend an extra 30 grand on a property that will only generate you $100-200 more in rent. At the end of the day, $1,200 isn't going to make or break my bank account, or get me excited for that matter. But what WILL kill a property's cash flow is lingering vacancies. If the property is superior, or at least higher quality to the rest, that should (in theory) minimize vacancies, which I believe is worth the extra capital. Not only are you paying for lower risk of vacancies, you are paying for peace of mind knowing that it's a lower risk compared to its peers.

The way I am currently analyzing a property's rental potential is basically the "eyeball test" in that I ask myself "Would I actually WANT to live in this property myself?". If the answer is even close to a maybe, or I have to convince myself why I like it, then that's a pretty good indication that I should move on to the next property. But what I am starting to realize is that not all renters are like me, and maybe I should be more open minded to buying a property that is much cheaper, but not as nice (in my opinion). 

Has anyone ever been in this predicament before? If so, what did you decide to do and what were the results? Thanks in advance!