Do you buy cheaper property that you can pay off faster or...
So currently the market I'm in, homes sell for an average price of 250K and range from 200K to 300K. I don't plan to sell any of my investment properties and plan to hold and rent as long as I can. That being said, I was wondering if I should buy a 200-250K home (that I can pay off quicker) or buy a 300K home?
My thought process is to see the rent rate for other homes near the area, see which house profits more after mortgage, figure out the average pay-off date, and go from there.
Sorry in advance if this post is a little messy, if anyone can point me to an article or provide insight on what strategy works best please let me know!
PS: The reason why I'm even contemplating this is that the first house I bought for 156K ($800/mo for the mortgage) is renting for $1,620 so I know there is more cash flow opportunity from cheaper homes.
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I try to buy the cheaper home in the nicer neighborhood. This is true even for personal properties.