Slumlord vs landlord? Best property (price point) to buy?

What is the best price point for buying rentals? A house geared towards a family that makes 35k a year at 1,000 a month or 90k a year and pay 2,000 a month and tend to be a more mature audience? I've never purchased based on a target income market- yet I know many do. Should I consider? I use a profitability number. Meaning with 20% down I look at my total monthly expense. I then multiply that by 1.2 and the house must rent for atleast that much for me to buy. So.. Example- 120k house- Mortgage - 700 + tax 200 + ins 100 = 1,000. So 1,000*1.2 = 1,200. If I can't rent it on a 2 yr lease for 1200.. I don't buy

interesting timing for this qu...

interesting timing for this question. Has been a growth in the market for high rent rentals as many folks caught in the bubble 5 years ago have good income but a foreclosure or bankruptcy on their records. In 2 and 3 years as those records clean up, will the higher end rental market dry up? I think answer is to know your niche and not be quick to go beyond it. For instance, if your multiple works for your low to mid level rentals, will it work on high end where need for granite/stainless/travartine and other eye candy skew rehab costs? Dont you hate having your question answered with more questions? Just think there is no one answer to your question. Varies by market and for each owner.

There are successful real esta...

There are successful real estate investments in all tiers of price points, they each come with their own unique pros and cons, types of renters and methods of dealing with the rentals. Lower income rentals can be lucrative but you have to be willing to put up with the increased hassles and hands on factors, high end rentals can be lucrative but you have to be willing to put up with the types of renters and their demands upon you.

There are also rental investments that investor like because they cash flow, but they may have very little appreciation over time, on the opposite end are investments that will appreciate over time and everything inbetween.

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