Start with 1 or many investment properties

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I've found a nice city that has an old couple selling there rental portfolio, each duplex they are selling is around 50,000 and they rent out from 1000 - 1300 dollars a month (both sides added together). I have enough cash to buy two out right, but I wonder if its better to leverage my money and buy seven or eight, so that if I get stuck with a bad home I have many others that support the bad one. But if the town really isn't that great all of them are in the same place. I would love to know other peoples opinions about starting small one or two rentals, or jumping in with seven or eight.

@Curtis Thygerson - I'm not speaking from much experience with MF, but my two cents would be not to put too many eggs in "one basket" right off the bat. I put one basket in quotes because I know technically they are separate properties. But going in big with one seller in one small area seems to be a bit more risky than perhaps you would be looking for on your first deal. That being said, if you do your due diligence and the numbers work, then it's hard to argue with that! Get some insights from people who also invest in that area and have them look over the numbers with you. Ask them if they'd do those deals. That's a great place to start.

Best of luck to you, Curtis!

@Curtis Thygerson Depends on how deep you’re willing to jump in initially. Will these duplex’s needs any renovations? Do they currently have tenants? Will you be keeping those tenants? What type of repairs are needed? Will you manage All or hire a property manger? I’d start with one, but finance it and keep your cash. That way once you determine if you enjoy this business, you’ll be able to jump in completely. I started with 1, enjoyed the process and about 8 additional over the past year. It’s a great game and lots of fun! Beat of luck