First investment, what would you do?

[Justin Smith]

I currently have my primary residence in California and own zero rental properties. I have been looking at multi family units in Ohio, Michigan, and Wisconsin mostly. I have approximately $50,000 with another $50,000 coming within a few months. Would it be better to buy multiple multifamily units that are $120,000-$150,000 and put as little down as possible to buy as many as possible or would it be better to buy multifamily or single family homes but put 20% down? Or if there is another path you would choose that I should consider then please feel free to share it.

[Arman Ahmed]

Quote from @Justin Smith:

I currently have my primary residence in California and own zero rental properties. I have been looking at multi family units in Ohio, Michigan, and Wisconsin mostly. I have approximately $50,000 with another $50,000 coming within a few months. Would it be better to buy multiple multifamily units that are $120,000-$150,000 and put as little down as possible to buy as many as possible or would it be better to buy multifamily or single family homes but put 20% down? Or if there is another path you would choose that I should consider then please feel free to share it.

With your first investment, I'd focus less on maximizing the number of properties and more on buying the best deal with strong fundamentals. A lot of new investors get excited about leverage and end up spreading themselves too thin. I'd rather own one or two solid cash-flowing assets with reserves in place than several properties that leave no room for unexpected expenses. Since you're already looking at Midwest markets, Ohio can be a great place to start because there are still affordable multifamily opportunities with strong rent-to-price ratios. More important than the exact down payment percentage is having a clear buy box, solid numbers, and a reliable boots-on-the-ground team. Your first deal should build confidence and experience, not create unnecessary stress.