Play it safe in the begining?

[Cory Melick]

I'm not sure if this is the correct place for this question, but here it is anways.

So i'm very new to real estate. I've been gaining a silent education the last few months on BiggerPockets and other sites/books. I do own a townhouse as my primary residence and my wife and I are looking to purchase rental townhomes in popular neighborhoods near us.

The issue I face is, my appiate for risk is pretty high and I want 1% rule, 50% rule properties. My wife on the other hand shops for CDs. When we discuss real estate, we both like the same neighberhood that is wildly popular, low low vacancy rate (we used to live there, these houses are like hotcakes), but they only have a 12-15% cash on cash return (after mortgage, insurance, taxes, 10% vacancy, 10% maintenance, 10% capex).

So my question is: should we wait for a better deal in an area we can both agree on, or since the properties do cash flow, purchase the safer, lower risk properties now and start learning the ropes, get known by the local real estate industy (pay the dues so the speak), etc?

I want to jump in as soon as possible, but the ADHD side of me wants a higher return at the same time.

Any guidance or advice or personal stories are greatly apperciated. Thanks!

[Bryan L.]

@Cory Melick - The way to get higher returns in that nice neighborhood that both of you like is to find a fixer and get a good deal on it. If you do this right and then refinance it, both your monthly payment will be lower and your out-of-pocket investment.