Which Property? Low Income Or Middle Class +
I'm at a fork in the road between two rental properties. One in a developing community(low income) and the other in a Middle class area. The facts are as follows:
Low Income property
100k less but needs ~20k in repairs
Total rent is $44 month less than the more expensive property.
Property is surrounded by underdeveloped properties that will be renovated within the next 5 years. Hopefully.
Middle Income property
100k more need minimal immediate repairs.
Property is surrounded by Middle and upper income properties.
5-10 years later will probably need updated heating system.
Any suggestions?
Hey,
I think the numbers say something different, but I would always go for the middle class house. Finding good quality tenants is a WHOLE LOT easier and the property will generally retain its value.
The lower class area MIGHT move to middle class, but I don't invest in things I can not control.