First Rental property- go big? or start small?

[Hunter H.]

Hey Guys,

I have 85k to invest and am new to real estate. I intend to spend a while educating myself before I jump in. I have been watching a lot of Grant Cardone's videos and he always says to go big and avoid single family/smaller multifamily. 

For my first deal- would you guys go for a smaller duplex to get experience/learn or go big right off the bat and try to get as many units (4-6?) as a 85k down payment will get me? 

Thanks!

[Ali Boone]

Hey Hunter! Well, the answer can vary. A lot of it depends on how smart you are buying. There are a lot of people who have solid heads on their shoulders and get the right amount of education before diving in, and may even have a slight natural knack for it, and they can do fine starting with bigger properties. You might be in that category. Understanding numbers, risk factors, logistics, etc. is key to starting. If you are legitimately up all of those things, you can do okay.

Keep in mind though, a 5- or 6-unit property will put you into the category of a commercial property rather than a residential. That's different financing, different exit strategies, etc. The returns aren't necessarily higher on those than they are smaller units. The numbers will vary between markets and such.