Amount to spend on first deal

[Butch Cantz]

I know this is a question that doesn’t have a solid answer but as I am looking at properties online I am drawn to 2 different areas.... lower end homes that are <$110k and have renters in place around $850- $1000

I also then found a property that is listed in an up and coming area for $225k ... tenant in place renting for $1700 month 

Seems to be a really good cash flow.  My concern is having to put more money out of pocket for a down payment and that I probably wouldn’t recoup that for 5-6 years 

thoughts for a first time investor ... is it best to get started in Lower income areas where properties are less or if I find something that is affordable (about $45k down payment) should I go for that 

my concern is that the second option leaves me not getting another property for a few more years as I wouldn’t have much left in savings 

Thanks in as advance 

[Kyle Mccaw]

@Butch Cantz only you can answer which is the better option for you. There are soo many things to take into consideration. Maintenance will most likely be higher with the lower end property. Application less likely also. Remember you can cash out refinance to purchase more also. You will also have some great tax write offs to help you raise more cash. You saved money up for your first property without owning a rental. With purchasing either property you will save up fast.