Updated over 10 years ago on . Most recent reply
Investing Out of State - Simplify for Diversify
In my recent research on investing out of state (for buy and hold), I came across an interesting topic and would like to start a discussion. The question is simplify or diversify?
Simplify -- buying in one area (city, county, or state). Find one good management company for all your properties.
Diversify -- buying in different areas, use multiple management companies.
I think for a large portfolio (20+ properties), diversification will help stabilize the investment. But for a smaller portfolio or someone who's just starting out buying 5 homes, does it make sense to diversify? What are your thoughts? What did you do?