1 BRRR or 2 properties (financed)

[Ken F.]

Hello BP, looking for some perspective/opinion on which route to take with $50K cash with the goal of long term buy and hold:

1. Pay cash for a BRRR - $50K
2. Purchase (finance) two $100K properties - $50K down payment (in total)

For simplicity, assume my numbers/deal are spot on and the cash flow in both scenarios is the same.

Pros of 1 BRR – Left out the R for repeat...as I would hold on to the property - No loan, one property (with same cash flow) – slightly less maintenance as only one set of mechanicals

Pros of 2 financed properties – Leverage, mortgage paydown by tenant, more potential appreciation (2 vs 1 property)

Cons of 1 BRRR – less rehabbed (just rent ready) vs 2 financed TURNKEY properties

Cons of 2 financed properties – lower cash flow per door, paying additional (taxes, insurance)

thoughts?