Would you rather...

Question

Would you rather;

1. Own 3 family outright with 1000 dollars of cash flow per month

or

2. Own 2, 3 families with a partner and cash flow 500 dollars per building (1000 dollars total).

Curious on the crowds reasoning!

Caleb Brown · Answer

I'd do option 1. Yes option 2 you have a better chance of growing cashflow, more doors, etc but I would not want a partner. Less risky and hassle if no partner was involved.

Jonathan Bombaci · Answer

Option 1 for me. I would enjoy the stability, simplicity, and control with having 1 property. Less tenants management as well!

Greg Kasmer · Answer

@Andrew Bosco - If you're doing a "test run" with a partner and hope to scale over time with him/her I think it would make sense on a smaller deal before you tackle bigger deals together. If that was the plan, I would vote for #2. However, if that was not the future plan I would vote for #1 as others have indicated.

Elizabeth Pyle · Answer

I would run an analysis on both scenarios to determine roi after 5 years for each option. Appreciation will be a big factor. And then do another analysis at 10 years. Maybe you have more equity with two properties after year 5 and can pull money out in year 5-9 to buy a 3rd property.

G. Brian Davis · Answer

I’d go with partnering. Even though the cash flow per building is lower, it allows access to bigger deals, spreads risk, and provides the chance to leverage other investors’ experience and capital, which can accelerate growth more than owning outright.

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