Updated over 7 years ago on . Most recent reply
Six Eggs and One basket
Hello guys!
Like many others, I am new to real estate investing and after circling the pool for over a year, I finally jumped in. I’m in contract for 2 OOS properties and looking at 3 others at this time within 3miles.
One big concern I have is seemingly putting all my eggs in one basket (one area). All of the numbers line up nicely, and it seems like a no-brainer to purchase all 5 properties up for sale. The area is nice, clean, and near a lake. It is also a few miles from a military base. I would like to think it would be perfect to own them all with time. But I don’t want to be with narrow vision on this particular area since there are plenty of rentals for sale in other cities and states. I think I feel most comfortable with these purchases since I have a team on the ground with me. My question is: Am I foolish to try to buy all the properties instead of expanding to other areas or foolish to leave a working plan for the unknown?
Please share and advise on your experiences.
Thanks in advance,
Katlin
Most Popular Reply
Providing that the numbers are to your liking . . .
I'd go for the 5 in the same area. That way you can have one property manager, one handyman, one market to understand and so on. Spreading your properties over several states, like I do, is a more advanced operation in my opinion. Each area has it's particular housing and eviction laws, weather and seasonal changes and so on. For your first few properties you are likely to be concentrating on the process and on the minutia and getting things set up. Try to keep it simple to start so that you are interested in doing more later.