I am in tough negotiations for a 1 bedroom condo facing a busy street located on a good side of town with a potential 11 percent ROI but I have found a 2 bedroom asking for 13 grand more on a little rougher side of town with a potential ROI of 13 percent. My question is should I pursue the property on the rougher side of town with a little higher ROI and potentially deal with a different type of tenant or work on the one on the nicer side of town facing a busier street. Any thoughts or suggestions would be helpful , thanks. --72.176.xxx.xxx

I vote for the nicer side of town with possibly better tenants. Less hassle, probably less upkeep, and less headaches for you. --72.199.xx.xxx

As for 1 BR vs 2 BR............since you already factored in your income, did you consider which unit will have more turn over cost given the niche you are choosing? --24.101.xxx.xx

Well the one on this nicer side will more likely be a short term rental property. --172.56.x.xxx

I'd go for the nicer neighborhood as well. --108.69.xxx.xxx

BOTH --99.103.xxx.xxx

SO small and nicer is better than larger crowed street with traffic. --47.155.xx.xxx

Be careful with the condo association. Many have restrictions on tenants VS owner occupied which they like better. Monthly fees and special assessments can also take a big bite out of the profits. --64.130.xx.xxx

My most important metric after profit goal is "number of unscheduled service calls". I have a feeling that on the "bad" side of town you'd have more of those. --99.92.xxx.xxx

I am with MYOB, if you don't know where you are going any road will get you there. --76.188.xxx.xxx

Which ever one is closer to you for any repairs would be my choice, I have places all around my large city but nearly everything has new plumbing and mostly new electrical and HVAC equipment. --76.188.xxx.xxx

potential is jack when you have to deal with real life on a rougher side of town... --107.77.xxx.xxx

Better Location.....every time. Regardless of all the other variables. --75.133.xxx.xx

I’m with RentsDue, better location every time. --173.48.xxx.xxx

"A rougher side of town" covers a whole lot of territory. When we lived in Ft Worth, we lived near the Lancaster Corridor. We lived on a good block in a bad neighborhood. So that's where familiarity with your geography comes into play--- our house was just generic-late-60's-build, but it was a decent house with decent neighbors. Yet just a few blocks away, an ice cream man was murdered for $20. Essentially the same area, yet worlds apart. --137.118.xx.xxx

Thanks to everyone for their time --172.56.x.xxx

I know a lot of landlords have made a lot of money in marginal areas, but if the government is going to continue this eviction nonsense, that removes control over tenants and marginal tenants are the most likely to take advantage. --76.178.xx.xx

In a "good neighborhood/bad neighborhood" discussion, another thing to consider is how well property holds its value in an economic downturn. After the 2007/2009 real estate crash, my SFH's in rough areas lost a LOT of value. The bottom fell out. My one and only property in a great neighborhood lost no value at all. Stayed flat a couple of years, then got back on a steep appreciation trajectory. --107.141.xx.xxx

neither. not worth the hassle on stated roi. on side note: I look at cash on cash returns. also. you should think about your target clientele. As Deanne suggests. --107.77.xxx.xxx

Thanks for everyone's time --172.56.x.xxx