1/1 in the ghetto or nicer property - first post

[Julian Pabon]

Hello guys! So this is my first post here. Ive been investing for 3 years and I follow the boards and listen to the podcasts. I currently own 3 rentals all nicer areas and neighborhoods and have been successful with them. Someone is currently offering me a 1/1 property (never had a desire to purchase a 1/1 before) for 50k. A fair value for the property would be 55k and its currently rented at $915 per month. Lease was just renewed until November of next year. The only thing holding me back is the area where the property is located is not in the better part of town and I think it would be difficult to sell In the future. Cash on cash return is close to 13% so the numbers are there but I would be out of cash for the near future preventing me from financing a nicer property which was my original plan. Am I overthinking the situation? I just don't want a headache due to the potential tenants I'd have to target which is out of my usual. Any input would be appreciated it

[Alan Grobmeier]

I have owned nicer SFRs and a fourplex in a not so nice neighborhood with a partner.  I still buy SFRs, but I don't buy fourplexes AND sold the one we did have at a slight profit.  My take:  if it doesn't fit you successful business model, RUN.  ;-)

Now you will hear from the 'shiny object type' that will tell you to buy it for less.   Lol

AG