While there are plenty
of good tenants in rough areas, unless you specialize in these types of rentals, really rough areas should be a deal breaker.
Then, in my opinion, get into the best neighborhood you can afford so that you have the
chances of better tenants & the best overall experience which would allow you to build a solid performing portfolio.
We really make an effort to rent out nice places and it feels like their is no benefit (dollar wise at least, maybe it is the
cause of better tenants but that is hard to measure).
These guys ended up being
some of our best tenants.
Three years in, and they've been
some of my best tenants.
Some of the best tenants I had were subsidized and they were pleasant to deal with, responsible, and didn't cause issues.
For ex: I have a section 8 tenant (one
of my best tenants) who has been with me for several year, the housing authority has denied every attempt of a rent increase each year for even an amount as low as $ 5 (yes $ 5 bucks, I was testing them).