Should I buy 1 pricier property, or 2-3 cheaper ones?

[Norman Berman]

Hi folks,

New investor here, researching out-of-state multifamily for a buy-and-hold strategy.

I have enough starting cash that I have a choice:

I can buy 1 property that is larger, has more units or bedrooms, is in an A or B quality neighborhood, is in better condition, and is in a city or neighborhood where values are currently appreciating.

Or, I can buy 2 or 3 properties that are smaller, B or C neighborhoods, might need more rehab, and are located in a city or neighborhood where the market is more stagnant.

How do I weigh this decision?

Thanks!

[Mark H. Porter]

I agree with Michael.  The rewards of buying the places that need lipstick to get rents maxed can be huge.  You just need to commit your time to it.