Larger down payment or small down and multiple properties?

Question

Thomas S. · Answer

You maximise your returns by maximising the number of income streams you own. The more the properties the greater the income, the greater the appreciation, the safer your investment.

It is similar to the difference between investing in a SFH or a multi unit. Safety and profit in numbers.

Assuming of course that you are able to invest in positive cash flow properties.

Even with total cash flow being the same between one property and multiple properties multiple units is a far smarter investment. Never put all your eggs, or your money, in one basket.

Joe Villeneuve · Answer

Putting more down doesn't make you more money. You don't start making money until you recover all the money you put in...as in spend. The more money you put in, the longer it takes to break even... before you make money

Noah Lochner · Answer

Thanks for the info @Jason Torres and @Thomas S.

J Torres · Answer

Hi @Noah Lochner,

Honestly depends on your strategy. Many would argue that having more properties is better as appreciation, tax incentives, etc.. would multiply plus you would be cash flowing from multiple properties not just one. But it all comes down to your numbers. Example: if putting 30K down on one home cash flows say $200 but putting $15K on each of two properties nets cash flows say $100 (assuming you ran your number correctly and any PMI etc. is added if applicable) you would be in the same position at the start but here's the thing. When rents go up say $50 you've effectively increased your cash flow by $100 if you had two properties instead of just $50 by having one you get me?

For me I'd be all about the cash flow later in life (with some still being needed obviously but it's a balance) but right now I focus on the future investment and returns. Hope that helps bud. Just my 2 cents.

Larger down payment or small down and multiple properties?

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