> I think you missed the entire point of the parent. Who cares about the resale value of the house? What you should care about is if it's a good rental or not.

> I think you missed the entire point of the parent. Who cares about the resale value of the house? What you should care about is if it's a good rental or not. In the 'burbs, you'll have more stable families, people who care a bit more about their house, people looking for longer term places to raise a family in a good neighborhood, and you can get some great tenants. It really depends. In Australia, tax concessions and negative gearing often mean making an operating loss on your rental is preferable, as you can deduct those losses from any other taxable income sources.