Help with Investment Strategy

[Luka Jozic]

Hi everyone,

Im starting my REI journey and have been reading lots and lots on the forums. I am looking to invest in multi-family properties out of state (most likely midwest) with a max price of 300K. I would like to run a couple "strategies" if you will and see what you guys think. So I have found some areas where you can find MFHs in the 50-150K range as well as other areas in the 150-300K range. I have a decent paying job and I am able to put aside roughly 70K yearly for investing, a number that I expect to almost double within the next 3-4 years. From what I can see the 150-300K range often cashflows a little more and I also feel like they may give more in appreciation (correct me if Im wrong here).

Obviously, going for the cheaper ones would allow me to buy more properties more quickly and build my portfolio quicker. But at the same time, the more properties I get, the harder more funding will be and when I hit 10, it will be very hard. Of course I can always sell off some of the cheaper ones bought early on and buy new more expensive properties but still. I wanted to see what you guys think about this and what your strategy is. I also understand that the condition matters and cheaper properties can have a higher headache factor. Since I am investing out of state I would like to keep that at a healthy level. Please let me know what you think!

[Luka Jozic]

Quote from @Jeffrey Albaum:

Hi ! I was in a similar situation to you and started buying less expensive multifamily properties out of state (first duplex purchased was $65k). If I had to do it again, I would just skip those properties all together and go right into the more expensive, less "headache-y" properties. Would love to chat further in depth if it would be helpful! Best of luck!

@Jeffrey Albaum That does make sense and kind of ties into what @Tim Johnson. Maybe I could find a happy medium of maybe finding properties around 150K that gets the best of both worlds. Not crazy expensive but maybe also possible to find in B neighborhoods?