Leverage vs. Cash buy? Novice Investor

[Justin C Huggins]

My primary goal is to acquire more properties quickly from either refinance or heloc from existing properties. I have roughly 50K right now to invest and I am looking into 2 different turnkey providers, Morris Invest and PARC. I can purchase potentially 2 houses with PARC while putting down 20-25%, but will only be able to purchase 1 with Morris invest. The ROI is going to be very close either direction. Any recommendations for a newby or things I should consider? In terms of housing quality, PARC seems to have higher end properties (B class), and Morris Invest is primarily (C class).

[James Wise]

Originally posted by @Justin C Huggins:

My primary goal is to acquire more properties quickly from either refinance or heloc from existing properties. I have roughly 50K right now to invest and I am looking into 2 different turnkey providers, Morris Invest and PARC. I can purchase potentially 2 houses with PARC while putting down 20-25%, but will only be able to purchase 1 with Morris invest. The ROI is going to be very close either direction. Any recommendations for a newby or things I should consider? In terms of housing quality, PARC seems to have higher end properties (B class), and Morris Invest is primarily (C class).

Here is some food for thought...As a rule of thumb the further from your home you get the more risky & expensive everything is. Repairs, Tenant Placement, Legal etc.... Why because you are paying someone else to do it for you & your not as familiar with the neighborhoods.

Since you are in a market that I assume to be similarly priced to a typical "turnkey" market you may want to look into buying local & having a PM handle everything. That way you have some more knowledge & control. Also I heard Arkansas is one of the most Landlord friendly states in the entire U.S.