second rental, pull the trigger?

[Chad Deberry]

Hello BP!

I live in Jacksonville, Fl and bought my first rental two months ago. It was a townhome in a lower income neighborhood that I purchased for $34,500 that was listed for $43,900. Originally agreed on $37,500 until I found roughly ~6k worth of repairs needed to be done, which I had the seller meet me in the middle on. Neighborhood comps 44-54k. 

2nd Property:

I found another property in the same neighborhood as a foreclosure listed for $43,500. It is in MUCH better shape than the first (new carpets/paint/no work needed). I'm offering $34,000. The rents in the area range between $550 and $750. Assuming I can rent for at least $600 (my first one rents for $650 and has an A+ renter) this would cash flow roughly $330/month and $4k/yr. It seems like a great deal based on ROI but I still have concerns.

The area is not one that seems to be growing at all. Also I looked at the schools in the area and they are all (elementary/middle/high) rated #2 schools. With this being my 2nd rental i'm not sure if I want to put all my eggs into one basket being that I have one in the neighborhood already. I paid cash for the first one and own it free and clear. I was planning to get a loan on the 2nd but pay cash if needed then refi, until my concerns. 

I guess my question is this. Should I take my cash and invest in a better area of town (class B or higher) or go with this because the numbers are solid?