First property, 125k, what do I do?

[Jason R Allen]

I'm looking to buy my first property.  

Would you recommend:

A. Buy 4 properties at around 125k each?

B. Buy 2 properties at around 250k each?

C. Buy 1 property at around 500k?

Assume overall roi and cash flow for each option is roughly the same.  Thanks for your opinions!  

[Bryce Jamison]

I'm more concerned about the quality of the property and area as opposed to the price. I want A to B class properties while avoiding anything C or below.

C and below properties always cashflow better on the spreadsheet compared to B and higher, but the spreadsheet doesn't account for all the headache that will come with lower quality properties.

But to answer what I think the intent of your question is, there's pros and cons to each. Multiple properties give you diversification, but then you'll have to manage multiple properties compared to 1. You'll also hit a cap on how many mortgages you can get, so you may start 1031ing your 8-10 100K properties into higher value ones for example.