Buy cheaper/in worse neighborhoods, or spend more for a nicer location?

Curious what people have experienced when it comes to buying somewhere to rent- as a first time landlord, is it a better idea to get a cheaper place in a worse neighborhood, or invest more in a better neighborhood? Assume both apartments are equal in quality, the bad neighborhood is 100k the better neighborhood is 200k.

what would you pick? Are the low initial costs better for first time landlords? Or are low income renters/bad area too risky to start with?

There’s a 4 bedroom 1.5 bath townhouse end unit in a somewhat bad area of town selling 20k lower now at 100k. I grew up and also currently live in the next town over, about 10 mins away so I know the area very well. It’s not a life threatening bad area, but it’s known for drug dealing, theft, and an occasional shooting. Honestly it’s more just sketchy people and low income families.

My mom has always had 1 rental, both cheap and nicer homes (both fairly close to this townhouse). She says always pay more for location, don’t go cheap in worse areas. The tenants are bad and more hassle than its worth. But in my head, I could charge 2k a month for 24 months and make the 20k deposit back, and $4000 profit (absolute best case scenario of course). This would also be my first rental unit.

submitted by /u/Spartansam0034
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Curious what people have experienced when it comes to buying somewhere to rent- as a first time landlord, is it a better idea to get a cheaper place in a worse neighborhood, or invest more in a better neighborhood? Assume both apartments are equal in quality, the bad neighborhood is 100k the better neighborhood is 200k. what would you pick? Are the low initial costs better for first time landlords? Or are low income renters/bad area too risky to start with? There’s a 4 bedroom 1.5 bath townhouse end unit in a somewhat bad area of town selling 20k lower now at 100k. I grew up and also currently live in the next town over, about 10 mins away so I know the area very well. It’s not a life threatening bad area, but it’s known for drug dealing, theft, and an occasional shooting. Honestly it’s more just sketchy people and low income families. My mom has always had 1 rental, both cheap and nicer homes (both fairly close to this townhouse). She says always pay more for location, don’t go cheap in worse areas. The tenants are bad and more hassle than its worth. But in my head, I could charge 2k a month for 24 months and make the 20k deposit back, and $4000 profit (absolute best case scenario of course). This would also be my first rental unit. submitted by /u/Spartansam0034 [link] [comments]

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