@Ofir R.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

With that, I want to ensure that my approach to real estate is starting with the niche that generates faster returns from the beginning) as a rough example:I can buy Focal Utopia headphones for 8K or I can buy headphones from kmart for $25.

Happy to connect you with one. 64130 does have some rough spots so be careful who you hire around that area

If you don’t have a backup plan, you’re in for a rough time.I don’t say any of this to scare people off—I’ve navigated all these challenges and built a great portfolio.

One of the things I'm trying to figure out is if I'm better off getting a few lower cost properties or on higher priced property. 

Then once I find a property that I like to buy I'll start looking at the comps in the area that have been rented and are currently on the market to be rented and make sure that my mortgage payment will at least break even with the rental comps.I'm using rough estimates on Zillow and websites alike.

@Ben CallahanRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Amir PortalRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Now, if you pull out that $125K and pay the tax penalties, that would get knocked down to ~$100K after fees and taxes (rough numbers for easy math sake).