Which one is more important ? Cashflow vs Location.

[Mohammad Nur]

I am planning to buy my 2nd investment property. Mostly looking for multifamily (2-4 units) but the one's at good locations are way overpriced. I have been looking around for last 3-4 months and now I have two properties on my sight now.

1. 1. Single family (3 bed 2 bath). Price around 240-245 K. Would easily rent for $1800/month. In an established and old A class neighborhood where the median price of house is usually around 275K. As you can see this would generate very low (around $150-200 /month) if I manage the property. Low COC return but probably less headache. There is some good potential for appreciation. This one can also be used as a short term rental if I want.

1. 2. Multifamily (3 units).  Price around 160K. Would generate $1950/month when fully rented. However, this is probably a C/C- area. Like it's not in the worst area but few blocks down the road there is greyhound bus terminal and some unwarranted foot traffic. I have visited the area at different times of the day and it felt safe-ish to me. This would generate substantial cashflow even if I use a property manage.

I have a full time job which I like very much and investing is my side hustle, but I also want to be wise and plan to be in the game for long. Both these properties are within 3 miles of my current residence. 

So what would should I go for ? Go for the cash flow and high return ( along with potentially more headache) or go with the property with better location and low cash flow?