We would rather buy in a higher class and have less cash flow/come out even and focus on appreciation and long term.

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.

While shopping for home insurance, I kept receiving higher premium quotes.

Although I will probably pay a slightly higher interest rate.

Charge the tenants a higher rent rate and include utilities with their rent.

During the hot season all the higher ranking properties get booked so your property has a chance to be exposed to the guests.

In Phoenix, a 1996 build is practically brand new when compared to a WWI-era home in Cleveland or Pittsburgh or some other Midwest or East coast city.While I agree that older homes come with more problems, buying something newer may not work as the price will be higher and won't cash flow as well.I'm of the mindset to buy what fits your budget and investment goals.

Only thing I would add here is to take a birds eye view of the area and try to decide if it will gentrify in your favor so the property appreciates at a higher rate than other areas.

I hold a decent-sized portfolio in Columbus and Cleveland and have seen higher appreciation in my Columbus portfolio.

The down payment might be a little higher, but it will be a much longer-term loan that you won't have to worry about coming up with big payment in month 24 and it'll be amortized over a much longer time period (probably 25-30 years), so the monthly payment could actually be lower.