Is it profitable to buy a rental property in upper class area?

[Jasraj Singh]

I was looking for investing and I recently read an article about investing in real estate and in that article it was written that in upper class area's of the town where the price range of the properties are $140,000-$150,000, no one rents there and there are almost no rental properties because everyone is owner. And there was also written that in an area where there are cheap properties ( $70,000-$90,000) it is easier to rent there because it is almost completely a renter-city.  So I'm wondering is it profitable to buy, rehab and rent a property in an upper class area?

[Patricia Steiner]

It can be extremely profitable, depending on the market. In South Tampa, homeowners undergoing renovations of their homes as well as buyers of custom builds are desperately searching comparable properties within their market to rent during the construction term which is always a year or longer. They're not willing to "camp" so the more comparable it is, the rental price becomes less of an issue and is simply seen as part of the construction cost.  

My recommendation - since you've share that the market there doesn't have rentals - would be to call a few builders to gauge if there might be a referral opportunity for such a property as well as talk to a few high-end property realtors.  I personally like to invest in these properties because the tenant pool is more financially stable.

Hope this helps...